France gains EU okay for 3 billion euro scheme to help virus-hit companies

FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels
FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium May 5, 2021. REUTERS/Yves Herman/File Photo

September 14, 2021

BRUSSELS (Reuters) – The European Commission on Tuesday approved a 3-billion-euro ($3.6 billion) French scheme to provide debt and capital support to virus-hit companies.

Called the Transition Fund for enterprises affected by the COVID-19 outbreak, the scheme includes subordinated and participating loans and recapitalisation measures, in particular hybrid capital instruments and preferred shares without voting rights.

Up to 100 companies are expected to benefit from the measure. The EU competition enforcer said the scheme complied with the looser EU state aid rules adopted since the start of the pandemic to help governments prop up virus-hit companies.

($1 = 0.8459 euros)

(Reporting by Foo Yun Chee)