April 26, 2020 / 8:15 PM / a month ago

EU firms hit by coronavirus can get loans of up to 5% turnover - source

BRUSSELS, April 26 (Reuters) - Companies in the European Union hit by the coronavirus will be able to ask for a government loan of up to 5% of their 2019 turnover under a new measure proposed by the European Commission, a person familiar with the matter said on Sunday.

The move comes after several EU countries asked for it, other sources with direct knowledge of the matter told Reuters on Saturday, declining to provide details.

The size of the loan could also be up to 40% of the beneficiary’s annual wage bill, the person said.

The EU executive has in recent weeks relaxed its state aid rules and nodded through trillions of euros via guaranteed loans, grants, subsidised interest rates and short-term export credit insurance offered to virus-hit companies across the bloc. (Reporting by Foo Yun Chee; Editing by David Clarke)

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