Brussels, 3 July 2023
The European Commission has approved an amendment to an existing Croatian scheme to support the liquidity of exporting companies in the context of Russia’s war against Ukraine. The amendment was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
The Commission approved the original scheme in July 2022 (SA.103167), which was subsequently amended in December 2022 (SA.105227). Under the scheme, the aid takes the form of (i) guarantees covering part of new eligible loans granted by commercial banks; and (ii) direct grants covering the loan guarantee premiums. Croatia notified the following modifications to the existing scheme: (i) an overall budget increase from previously approved €552 million to around €747 million; and (ii) an adjustment of the maximum aid ceilings, in line with the Temporary Crisis and Transition Framework as currently in place.
The Commission found that the scheme, as amended, continues to be in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, with respect to the guarantees on loans, (i) the aid will cover guarantees on loans with a limited maturity and size; and (ii) the guarantee premiums respect the minimum levels set out in the Temporary Crisis and Transition Framework. With respect to the direct grants, the aid will not exceed €2 million per beneficiary. Support under the scheme will be granted no later than 31 December 2023. The Commission concluded that the amendments to the scheme 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 Crisis and Transition Framework. On this basis, the Commission approved the scheme, as amended, under EU State aid rules.
More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine and foster the transition towards a net-zero economy can be found here. The non-confidential version of the decision will be made available under the case number SA.107869 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission