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A European guarantee fund is being set up to help businesses affected by the pandemic

The European Commission (EC) is approving the creation of a € 25 billion European Guarantee Fund.

A European guarantee fund is being set up to help businesses affected by the pandemic
Yazar: Tom Roberts

Yayınlanma: 15 Aralık 2020 19:33

Güncellenme: 7 Kasım 2024 01:27

A European guarantee fund is being set up to help businesses affected by the pandemic

The European Commission (EC) is approving the creation of a € 25 billion European Guarantee Fund. The establishment of a fund managed by the European Investment Bank (EIB) to support companies affected by the new coronavirus pandemic is in line with European Union (EU) state aid rules. The fund is expected to mobilize up to € 200 billion in additional funding to support small and medium-sized enterprises in particular in 21 Member States, which have been hit by the epidemic. In a press release, Ingrid Ludviková from the press department of the Representation of the European Commission in Slovakia informed about it. The establishment of a Europe-wide guarantee fund is part of the EU's overall response to the current pandemic and is one of three "safety nets" designed to mitigate the economic impact on workers, businesses and countries in the Euroblock. The fund aims to address in a coordinated way the financing needs of European companies that are viable in the long term but are currently facing financial difficulties. All Member States have the opportunity to participate, guaranteed by contributions from their national budgets.
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