EU Approves French Support Schemes under the New Temporary Framework

Having adopted the Temporary Legal Framework to support the economy in the current COVID-19 outbreak, the European Commission has cleared the first State aid schemes under the Framework.

France was first to receive approval for three schemes notified under the Temporary Framework.  “These [State aid schemes] are expected to mobilise 300 billion of liquidity support for companies affected by this unprecedented situation”, said Executive Vice President in charge of competition policy Margrethe Vestager.

Envisaged as a tool to ensure liquidity, the aid will be available under favorable conditions and limited to those who need it most in the current circumstances.  Covering guarantees on loans limited in size and maturity, the measures encompass:

  • State guarantees on commercial loans and credit lines for enterprises with up to 5,000 employees, to be provided by the French public investment bank Bpifrance;
  • State guarantees to banks on portfolios of new loans for all types of companies.

 

For more information, please contact us via covid19@geciclaw.com