Brussels- The European Commission has approved the Slovenian aid scheme that covers part of fixed costs of companies affected by the coronavirus crisis. The scheme has been approved on the basis of the Temporary Framework for State Aid, the Commission announced on Tuesday.

Announcing the approval, European Commission Vice President Margrethe Vestager noted that numerous companies in Slovenia were facing a significant drop in revenue due to the restrictive national measures to stem the spreading of the coronavirus.

The scheme, worth EUR 900 million, will enable Slovenia to further support companies affected by the epidemic by partly covering their operating costs, Vestager added.

As part of the scheme, direct grants will be available to all companies, regardless of their size and the sector in which they operate, which have suffered at least a 30% drop in revenue between October and December year-on-year.

The scheme, which excludes financial institutions, is expected to help bridge the reduction in liquidity or the lack of available liquidity funds due to the temporary stoppage or reduction of business activity.

The support will be available to companies registered before October 2019. Those meeting the criterion may look forward to the coverage of 70% of their fixed costs not covered by revenue (or 90% for micro and small companies).

The ceiling for an individual company is EUR 3 million.

The scheme may also be used by companies registered between October 2019 and September 2020, which will be eligible for up to EUR 100,000 in the agriculture sector, EUR 120,000 in the fisheries and aquaculture sector, or EUR 800,000 in other sectors.

The European Commission believes that the scheme, under which all beneficiaries will be able to get aid not later than on 30 June 2021, is in accordance with the Temporary Framework for State Aid.