a Notice According to the Commission, the extension of this temporary framework for a period of 6 months will allow member states to extend support programs if necessary, that is, not to deprive companies that are still exposed to the effects of the crisis of the necessary support overnight. In parallel, the Commission will continue to closely monitor the evolution of the coronavirus pandemic and other risks to the economic recovery.
UNHCR today I also introduced two new tools, which are designed to support the recovery of the European economy in a sustainable way:
- Investment Support Measures: Their goal is to help member states close the investment gap created by the crisis. Member states can create incentives to encourage business investment and use this tool to accelerate green and digital transformation. There are a number of safeguards to prevent unjustified distortions of competition, such as limited assistance and measures targeting a wide range of beneficiaries. The facility will be available to member states until December 31, 2022.
- Solvency Support Measures: Their goal is to mobilize private resources and make them available for investment in SMEs, including start-ups and SMEs. Member states may provide guarantees to private brokers, which creates incentives to invest in this type of company. This is especially important as corporate indebtedness deteriorated during the crisis. The facility will be available to member states until December 31, 2023.
In addition to the above, today the authority decided to make other amendments. Therefore, the authority:
- Allow Member States to transfer funds repayable under the Interim Framework (such as guarantees, loans and advances) into other forms of support, such as direct grants, for another year, until 30 June 2022 instead of 30 June 2022;
- adjusting the maximum amounts for certain types of aid in proportion to the extended period;
- Clarify the application of exceptional flexibility provisions in the Commission’s bailout and restructuring guidelines.
- In the context of short-term export credit insurance, it extended the revised list of countries with non-marketable risks for another 3 months (from December 31, 2021 to March 31, 2022).
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