One billion euro Covid recapitalisation scheme approved

Spain plans to set up a €1 billion recapitalisation fund.

The European Commission has approved, under EU State aid rules, Spanish plans to set up a €1 billion recapitalisation fund that will invest through debt and equity instruments in certain companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

“This €1 billion recapitalisation scheme will enable Spain to support companies affected by the coronavirus outbreak by facilitating their access to finance in these difficult times. We continue working in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules,” said Executive Vice-President Margrethe Vestager.

Spain notified to the Commission under the Temporary Framework a €1 billion recapitalisation scheme to provide debt and capital support to companies affected by the coronavirus outbreak.

The scheme will be implemented through a recapitalisation fund, which goes under the name “Recapitalisation Fund for companies affected by Covid-19 outbreak”, with a budget of €1 billion. Under the scheme, the aid will take the form of debt and recapitalisation instruments, in particular equity and hybrid capital instruments.

The measure is open to companies established in Spain and active in all sectors except the financial one, with total net yearly revenues of minimum €15 million and up to €400 million on a consolidated basis, and that are now facing capital needs due to the coronavirus outbreak. Companies that have already received support through the “Solvency Fund for Strategic Enterprises” approved by the Commission in July 2020 are not eligible for aid under this new scheme.

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Written by

Deirdre Tynan

Deirdre Tynan is an award-winning journalist who enjoys bringing the best in news reporting to Spain’s largest English-language newspaper, Euro Weekly News. She has previously worked at The Mirror, Ireland on Sunday and for news agencies, media outlets and international organisations in America, Europe and Asia. A huge fan of British politics and newspapers, Deirdre is equally fascinated by the political scene in Madrid and Sevilla. She moved to Spain in 2018 and is based in Jaen.


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