State aid: Commission approves €40 billion budget increase and amendments to previously approved Spanish guarantee schemes in context of coronavirus outbreak

The European Commission has found that the amendments to two previously approved Spanish schemes are in line with EU State aid rules, in particular with the State aid Temporary Framework. The existing schemes, providing guarantees on loans to companies and the self-employed affected by the coronavirus outbreak and with a total budget of €20 billion, were approved on 24 March 2020. The amendments to the schemes increase the budgetary envelope by €40 billion, which will be released in different tranches. The first tranche to be released amounts to €8 billion. Under the amended schemes, guarantees will be available only on new loans (and not on refinancing operations). The Commission found that the amended measures are in line with the conditions set out in the Temporary Framework. In particular, the maximum maturity of the guaranteed loans has been increased from five to eight years, applying higher guarantee premiums for the additional years. The Commission concluded that the schemes, as modified, remain necessary, appropriate and proportionate to remedy a serious disturbance in the Spanish economy, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. The Commission approved the amended schemes under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.58096 in the State aid register on the Commission’s competition website.