The Greek aid scheme amounting 1 billion. euros to support businesses affected due to the outbreak of coronavirus, today approved the European Commission………
The executive vice Margrethe Vestagker, responsible for competition policy, said that "this Greek system of repayable advances amounting 1 billion. Euro will help ensure sufficient liquidity in the Greek economy ". Further noted that "ensures that businesses are more affected because of the outbreak of coronavirus will continue their economic activity during the crisis and after its end and assured that the Commission will continue to work closely with Member States to ensure the applicability of national support measures in a coordinated and efficient manner, in accordance with EU rules.
The scheme was approved under the temporary framework for state aid, which the Commission adopted on 19 Of March 2020 and amended on 3 April 2020, as explained in a statement of the commission.
Focusing on Greek support measure, The European Commission says that Greece notified of a repayable advance arrangements, estimated amount 1 billion. euro under the Temporary Framework, to support businesses affected by the outbreak of coronavirus. "The scheme is open to companies operating in all sectors and apply to the entire Greek territory. Aimed at companies facing temporary financial difficulties due to outbreak of coronavirus, as evidenced by the significant decrease in their activity. The scheme will help ensure the liquidity available in the market, to address the damage caused by the outbreak of disease and to maintain the continuity of economic activity during and after the outbreak of the disease, "notes.
also, states that the reimbursable advances will be disbursed by the Independent Authority for Public Revenues (Principle of authorization) directly to businesses, without the mediation of banks. Support under this scheme will be granted to 30 June 2020.
The committee, as stated in its communication, found that the Greek measure complies with the conditions laid down in the Temporary Framework. particularly: i) the refundable advances scheme limited to creditworthy businesses, ii) reimbursable advances will be granted until June 2020, iii) the measure is proportionate to the consequences of a serious disturbance caused by the outbreak of coronavirus and (iv) the amounts of aid does not exceed the levels laid down in the Temporary Framework.
The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, according to the article 107 paragraph 3 b) TFEU and conditions set out in the Temporary Framework.
On this basis, the Commission approved the measure under EU rules on state aid.