State aid: Commission approves €59 million Lithuanian scheme to support companies active in the agricultural, food, forestry, rural development and fishery sectors
The European Commission has approved a €59 million Lithuanian scheme to support companies active in the agricultural, food, forestry, rural development and fishery sectors that are affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020 and 8 May 2020. Under the scheme, public support will be provided as follows: (i) €9 million in the form of direct grants; and (ii) €50 million in the form of guarantees on loans. The purpose of the scheme is to address the liquidity needs of companies active in the agricultural, food, forestry, rural development and fishery sectorsand help them to continue their activities during and after the outbreak. The scheme is expected to benefit approximately 1,300 companies of all sizes active in those sectors. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework. In particular, the grants for interest and guarantee premium compensation do not exceed €100,000 per company active in the primary production of agricultural products, €120,000 for companies active in the fishery or aquaculture sectors, and €800,000 per company active in other sectors. Furthermore, with respect to guarantees on loans, the guarantees relate to investment and working capital loans. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.57529 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
