The European Commission has disbursed € 14 bln to nine EU countries in the second installment of financial support. As part of today's disbursement, Greece received € 2 bln; Cyprus € 250 mln; Croatia €510 mln; Italy € 6.5 bln; Latvia € 120 mln; Lithuania € 300 mln; Malta € 120 mln; Slovenia € 200 mln; and Spain an additional € 4 bln.
Brussels, Belgium: 17 November 2020
This support, in the form of loans, will assist these Member States in addressing sudden increases in public expenditure to preserve employment. Specifically, the SURE financing will help cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the coronavirus pandemic, including for the self-employed.
At the end of October, Italy, Spain and Poland already received a total of €17 bln under the EU SURE instrument.
Once all SURE disbursements have been completed to the 9 countries receiving financial support today, Croatia will receive € 1 bln; Cyprus € 479 mln; Greece € 2.7 bln; Italy € 27.4 bln; Latvia € 192 mln; Lithuania € 602 mln; Malta € 244 mln; Slovenia € 1.1 bln; and Spain € 21.3 bln.
The SURE instrument can provide up to € 100 bln in financial support to all Member States. The Commission has so far proposed to make € 90.3 bln in financial support available to 18 Member States. The next disbursements will take place over the course of the months ahead, following the respective bond issuances.
For more information, please visit European Commission’s site
We remind our readers that this is a loan repayable to the European Commission. This means that already heavily-indebted countries are borrowing to maintain employment during a downturn. While it is hoped that these funds can be repayed following the Pandemic, we should be under no illusion as to the difficulties this may cause.
Navigator Consulting Group provides Investment Advisory and Strategic Management services for companies in Cyprus, Greece and internationally.
For further information, please contact:
Philip Ammerman
Managing Director
Sources:
European Commission. 17 November 2020
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