Brussels approves 1 billion euro recovery fund for Covid-hit Spanish firms

Brussels, Jul 19 (EFE).- The European Commission approved on Monday Spain’s proposal to set up a 1 billion euro ($1.17B) recapitalization fund to help the recovery of Spanish companies affected by the coronavirus pandemic.

“This €1 billion recapitalization scheme will enable Spain to support companies affected by the coronavirus outbreak by facilitating their access to finance in these difficult times,” Executive Vice-President Margrethe Vestager said in a statement.

The Recapitalization Fund for companies affected by Covid-19 outbreak will invest through debt and equity instruments to provide capital support to the most affected companies.

Companies in all sectors, except those in the financial sector, are eligible for the scheme, unless they have already received aid under another recovery fund.

Only companies that were not considered in financial difficulty before 31 December 2019 are eligible for the aid.

“The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of Spain,” the EC said. EFE

cat/mp/jt