The European Commission approved on Tuesday 5.2 billion euro (CZK 142 billion) Czech loan guarantee scheme for large companies with export activities affected by the coronavirus outbreak.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This Czech guarantee scheme of about €5.2 billion will support companies with a certain amount of export activities in these difficult times. The measure will help these businesses continue their activity during and after the coronavirus outbreak. We continue to work in close cooperation with the Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.”

The scheme will be accessible to large companies whose exports represent at least 20% of their yearly sales revenue.

The guarantees will support lending to those companies, but will not take the form of export aid contingent on export activities as it is not tied to concrete export contracts.

On the contrary, it finances the general activity of the beneficiaries by facilitating their access to liquidity in the form of working capital loans and investment loans.

The Commission has adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak.

The Temporary Framework will be in place until the end of December 2020.