The European Commission has approved amendments to an Italian loan guarantee facility that includes a budget increase of up to €23 billion to support companies in the context of Russia’s war against Ukraine. Between the approved increase and the original measure, authorized by the Commission on July 19, the overall budget of the plan will not exceed 33 billion.
In addition to the budget increase, the amendments to the existing measure relate to: the introduction of an aid measure of a limited amount of up to 7 million euros to cover guarantee premiums under certain conditions; an extension of the period for which aid can be granted, until 31 December 2023; the introduction of the possibility, for energy-intensive companies, of obtaining guarantees to cover liquidity needs for a period of 12 months for small and medium-sized companies or 6 months for large beneficiaries, from the granting of the subsidy and with possibility to use self-certifications; the introduction of the possibility of increasing loan amounts to meet the need to provide financial guarantees for the commercialization activity in the energy markets based on the self-certification of the beneficiaries.
The Commission considered that the amendments to the Italian measure are in line with the conditions set out in the Temporary State Aid Crisis Framework. In particular, with regard to guarantees, the duration of loans cannot exceed eight years; and annual interest rates on loans will have to respect the minimum levels set out in the Temporary Crisis Framework. When it comes to limited amount aid, support will not exceed €250,000 per active beneficiary in the primary production of agricultural products, €300,000 in the fisheries and aquaculture sectors and €2 million in all other sectors.
Source: IL Tempo
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
