EU okays 1 billion euro Spanish recapitalisation scheme for virus-hit companies

Flags flutter outside EU Commission in Brussels
FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, July 14, 2021. REUTERS/Yves Herman

July 19, 2021

BRUSSELS (Reuters) – Spain secured EU clearance on Monday for a 1-billion-euro ($847 million) recapitalisation scheme for virus-hit companies, one of dozens of measures approved by EU state aid regulators since the start of the pandemic to help European businesses.

Under the scheme, the aid will take the form of debt and recapitalisation instruments, in particular equity and hybrid capital instruments. It will be open to companies with total net annual revenues of at least 15 million euros and up to 400 million euros on a group basis.

The European Commission said the measure complied with EU state aid rules introduced last year to help EU governments bail out virus-companies.

($1 = 1.1805 euros)

(Reporting by Foo Yun Chee)