Creation of a Solvency Support Instrument for Economic Recovery

Summary

The proposal aims to create a Solvency Support Instrument to help companies, especially SMEs, survive the economic impact of the COVID-19 pandemic through EU-backed equity support.
9 03.09.2020
Other
economy
finance
environment
social policy
business and competition
public finance and budget policy

Key points

  • Creation of a new solvency support window within the existing European Fund for Strategic Investments framework.
  • Targeting viable companies and small to medium-sized enterprises that are most economically impacted by the pandemic.
  • Providing financial support primarily through equity or quasi-equity instruments to improve company capital bases.
  • Imposing strict conditions on large beneficiaries, including limits on dividend payments, executive bonuses, and share buy-backs.
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