EC approves Polish state aid for pandemic-hit companies

The European Commission on Friday approved a Polish state aid programmme to compensate businesses for losses suffered as a result of the Covid-19 pandemic, and to provide liquidity support.

"This scheme will enable Poland to partially compensate large companies for the damages suffered as a result of the restrictive measures put in place to limit the spread of a third wave of the coronavirus pandemic, while supporting their immediate liquidity needs," the Commission's Executive Vice-President Margrethe Vestager, in charge of competition policy, said.

The programme, to be managed by the Polish Development Fund, is part of a financial shield for large enterprises. It is modelled upon a previous Polish programme approved by the Commission on May 29, 2020.

Under the plan, assistance will be granted in the form of subsidised loans bearing interest at favourable terms, which can be redeemed in an amount not exceeding 75 percent of the actual damages incurred by the beneficiary companies from November 1, 2020, until April 30, 2021, and directly due to the coronavirus outbreak.