The EC Proposes Companies to Receive State Credit of up to 5% of their Annual Turnover

World » EU | April 27, 2020, Monday // 16:07
Bulgaria: The EC Proposes Companies to Receive State Credit of up to 5% of their Annual Turnover

Companies in the European Union affected by the coronavirus crisis can apply for a government loan of up to 5% of their annual turnover for 2019.

Another criterion is for the loan to cover up to 40% of the the beneficiary's annual wage bill.

However, such debt will be evaluated with a lower priority in the event of a bankruptcy and liquidation of the company, which makes it more risky and therefore with more serious requirements for disbursement.

This is a European Commission proposal under discussion and its parameters may change, according to a Reuters source familiar with the progress of the initiative. t

EU competition regulators await comment from national authorities.

Several EU countries have sought the opportunity to implement such a measure, other agency sources say.

The EU executive has in recent weeks relaxed its state aid rules and approved trillions of euros via guaranteed loans, grants, subsidised interest rates and short-term export credit insurance offered to virus-hit companies across the bloc.

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Tags: state aid, companies, credit, EU, turnover

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