European Commission approves €2 billion Slovenian guarantee and rent relief schemes to support companies affected by coronavirus outbreak
The European Commission has approved two Slovenian schemes to support companies affected by the coronavirus outbreak. The schemes were approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “These schemes, with a total estimated budget of over €2 billion, will enable Slovenia to further support companies affected by the coronavirus outbreak. Under the schemes, the support will take the form of rent rebates and exemptions as well as public guarantees on loans. They will support companies’ urgent liquidity needs and help them continue their activities during these difficult times. Our work with Member States continues to ensure that national support measures can be put in place in a timely, coordinated and effective way across the EU.”
The Slovenian support measures
Slovenia notified to the Commission under the Temporary Framework two schemes, with a total estimated budget of approximately €2 billion, to support companies affected by the coronavirus outbreak.
Under the schemes, public support will be provided as follows:
€500,000 in the form of rent rebates and rent exemptions for tenants of commercial real estate managed by Slovenian public bodies; and
€2 billion in the form of public guarantees on investment and working capital loans.
Both schemes will be open to all companies active in Slovenia facing difficulties as a result of the economic impact of the coronavirus outbreak. The aim of these schemes is to address the liquidity needs of those companies which are most severely affected by the economic impact of the coronavirus outbreak and to help them to continue their activities, start investments and maintain employment during and after the outbreak.
The Commission found that the two Slovenian schemes are in line with the conditions set out in the Temporary Framework. In particular:
with respect to rent rebates and rent exemptions (direct grants), the support per company will not exceed the limits as set out in the Temporary Framework;
with respect to State guarantees, (i) the underlying loan amount per company covered by a guarantee is limited to what is needed to cover its liquidity needs in the foreseeable future, (ii) the guarantees are limited to a maximum of five years, and (iii) the guarantee fee premiums do not exceed the levels foreseen by the Temporary Framework.
The Commission concluded that the Slovenian measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.
On this basis, the Commission approved the measures under EU State aid rules.