• Last Friday, the European Commission approved an aid scheme for large companies.
• The entrepreneurs will receive PLN 7.5 billion.
• The negotiations were conducted by UOKiK and PFR (Polish Development Fund).

Last Friday, the European Commission issued a positive decision on an aid scheme that provides for granting public aid to entrepreneurs in the form of a soft loan subject to redemption (case SA.57054 - Polish anti-crisis measures - COVID-19 - financial shield for large enterprises - loan redemption). The scheme was notified to the European Commission by the President of UOKiK on 23 April this year and following over a month-long negotiations conducted by the Office of Competition and Consumer Protection and the Polish Development Fund, it was finally declared to be compatible with the internal market.

The scheme provides for granting loans to large enterprises and selected small and medium-sized enterprises to finance their day-to-day operations, while the redemption is intended to compensate them for the damage they have suffered due to the epidemic outbreak. The amount of redemption may not exceed 75% of the loan principal and 75% of the damage suffered by the entrepreneur. The aid scheme was approved under two legal bases:

1. the soft loan was approved under section 3.3 of the Temporary Framework for State aid measures to support the economy in the context of the ongoing Covid-19 epidemic

2. the redemption was authorised directly on the basis of Article 107(2)(b) TFEU.

The approved scheme has a budget of PLN 7,5 billion. It is part of the government's programme entitled  "Financial shield of the Polish Development Fund for large companies."

Additional information for the media:

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