Ministry: 40% of Companies Receiving State Aid Survive
According to the ministry, the state aid system is effective and practical, as every company that have received state aid returns several times as much to the public purse in two to three years.
The system of state aid has been comparable to that in other EU members in efficiency as well as economical in light of opportunity costs. It has been serving its purpose, the ministry says.
In line with the legislation a troubled company that is eligible for state aid is one that is not capable of ending negative trends with its funds or funds it can get from owners or creditors. They are the companies whose existence would be in danger without the help of the state.
In the 2008-2013 period, the state helped such companies with short- or long-term loans and subsidies. Due to a lack of budget funds, it turned to state loan guaranties in 2011. Last year the state decided to again provide equity investment, but this option has not been used yet.
Since 2003, the state has helped 71 companies, giving out EUR 153.9m. Just over half (EUR 84.9m) was provided in the form of state guaranties, one fifth in the form of short- and long-term loans (EUR 40.5m), while EUR 28.1m represented subsidies. The rest of the funds were used for conversion of claims.
The analysis will be presented to the government at one of its upcoming meetings.