The European Commission on Tuesday approved French plans to set up a €3 billion fund that will provide debt and capital support to companies affected by the Coronavirus outbreak, according to a press release.
“This €3 billion recapitalisation scheme will enable France to support companies affected by the coronavirus outbreak by facilitating their access to finance in these difficult times,” said Margrethe Vestager the Executive Vice-President of the EU Commission.
“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,” added Vestager.
France notified the Commission under the Temporary Framework a €3 billion scheme to provide debt and capital support to companies affected by the coronavirus outbreak.
Between 50 and 100 companies are expected to benefit from this scheme.
The scheme will be implemented through a fund, which goes under the name “Transition Fund for enterprises affected by the COVID-19 outbreak.”
Under the scheme, the aid will take the form of subordinated and participating loans and recapitalisation measures, in particular hybrid capital instruments and preferred shares without voting rights.
The measure is open to companies established in France and active in all sectors (except the financial one), which were viable prior to the coronavirus outbreak and have demonstrated the long-term sustainability of their business model.