VILNIUS – The European Commission has approved Lithuania’s 110 million euros worth aid scheme to support business in the context of the coronavirus crisis.
The scheme was approved under the State Aid Temporary Framework adopted by the Commission last month, the Commission said in a press release on Wednesday.
“This … scheme ... will enable public guarantees on loans to support Lithuania's economy during the coronavirus outbreak. It will help businesses cover immediate working capital needs and continue their activities during and after the pandemic,” the press release quoted Margrethe Vestager, the Commission’s Executive Vice-President in charge of competition policy, as saying.
The support under the Lithuanian scheme will be open to small and medium-sized enterprises (SMEs) and large companies facing difficulties as a result of the economic impact of the coronavirus outbreak. The aim of the scheme is to help businesses to cover their immediate working capital or investment needs, thus ensuring the continuation of their activities.
In total, the Lithuanian government plans to offer over 800 million euros in guarantees for bank loans to struggling businesses.