Brussels, 12 July 2022
The European Commission has approved a €500 million (HUF 200 billion) Hungarian scheme to support small and medium-sized enterprises (‘SMEs’) across sectors in the context of Russia’s invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, based on Article 107(3)(b) TFEU, recognising that the EU economy is experiencing a serious disturbance.
Under this measure, which will be administered by Garantiqa Hitelgarancia Zrt, the aid will take the form of guarantees covering up to 80% of the loan amount. In light of the high degree of economic uncertainty caused by the current geopolitical situation, the scheme is aimed at ensuring that sufficient liquidity remains available to the companies in need. The Commission found that the Hungarian scheme is in line with the conditions set out in the Temporary Crisis Framework.
In particular, (i) the maximum duration of a guarantee is 6 years; (ii) the guarantee premiums respect the minimum levels set out in the Temporary Crisis Framework; and (iii) the public support will be granted by 31 December 2022 at the latest. The Commission found 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 scheme under EU State aid rules.
More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s invasion of Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.103315 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission