The European Commission said the scheme consists of a state guarantee for private investment vehicles, funded by private investors, that will acquire participating loans distributed by commercial banks as well as subordinated bonds, aimed at improving their capital position.
French firms went into the COVID-19 crisis last year already with a record level of debt, and they drew heavily on state-guaranteed loans from their banks as cashflow collapsed during France’s worst post-war recession. They will have longer maturities than the first round of state-backed loans and also carry higher interest rates. They will also have a four-year initial grace period on principal repayments and companies are required to use the money for financing investment, not previous debt, the Commission said.
Thought State Aid was illegal in the EU?
Recently my friend's baby was diagnosed with acute lymphocytic leukemia & needs a stem cell transplant. Jason & his wife are first-time parents caring for a sick baby & could use some help. If you are in a place to donate or share, it would be appreciated.