The European Commission has approved a €43 million Italian scheme to support companies active in the sports sector affected by the coronavirus outbreak.
The scheme was approved under the State aid Temporary Framework. The scheme, which will be managed by ‘Istituto per il Credito Sportivo’, will be open to sports associations and amateur sports entities, as well as to professional sports clubs engaged in national team championships of Olympic and Paralympic disciplines, that are registered in Italy.
Under the scheme, the public support will take the form of gratuitous State guarantees covering 90 per cent of loans with a nominal amount of up to €30,000; State guarantees of up to €5 million covering 80 per cent of the underlying loan amounts; subsidised interest rates on all the loans covered by the state and exemptions to companies benefiting from guarantees on the loans.
The aim of the scheme, which applies only to new loans, is to help the beneficiaries address the liquidity shortages they face due to the coronavirus outbreak and enhance their access to financing, thus helping them continue their activities during and after the outbreak. The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Framework.
For all measures, aid can only be granted until December 31, 2021. The Commission concluded that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State. On that basis, the Commission approved the measure under EU State aid rules.
Thank you for taking the time to read this article, please remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and follow us on Facebook and Instagram.