State aid: Commission approves €1.25 billion Hungarian scheme to support companies in context of Russia's war against Ukraine
Daily News 27 / 10 / 2022
Source: European Commission Spokesperson's Service
The European Commission has approved a €1.25 billion Hungarian loan and guarantee scheme to support small and medium enterprises (‘SMEs') and large companies in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU'), recognising that the EU economy is experiencing a serious disturbance. Under this measure, the aid will take the form of (i) loans with subsidised interest rates; and (ii) guarantees on loans granted by the Export-Import Bank Private Limited Company Eximbank ('Eximbank'), the State-owned export credit agency. The Commission concluded that the Hungarian scheme is 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 Framework. On this basis, the Commission approved the aid measure under EU State aid rules. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €1.25 billion scheme will enable Hungary to provide them with liquidity support necessary for the continuation of their activities. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.” A press release is available online.