15.12.2020

The EC has set up a European guarantee fund to help businesses

The European Commission (EC) has set up a European Guarantee Fund under the management of the European Investment Bank (EIB) to help companies affected by the coronavirus, according to a statement from Brussels. The fund has a capital of 25 billion euros, but it is expected to mobilize about 200 billion euros to help businesses.

It involves 21 EU countries, including Bulgaria.

The creation of the fund was approved in the spring of 2020 as one of the pillars in protecting the European economy from the crisis caused by the coronavirus. The aim is to provide credit guarantees for European companies, mainly small and medium-sized ones, which are facing major difficulties.

All countries have the option to participate in this fund. At this stage, it is not only Hungary, the Czech Republic, Estonia, Latvia, Romania and Slovenia that have stated this. The participants in the new institution will contribute to the budget with contributions based on their share in the EIB.

The guarantees will be distributed by a special commission set up by the countries participating in the Fund. Its management is organized by the EIB and the European Investment Fund.

The institution is temporary and provides for the granting of business aid until December 31, 2021.