The European Commission has approved, under EC Treaty state aid rules, two Czech plans to provide relief for companies during the current economic crisis. The first plan allows government, regional and local authorities to grant companies reduced interest rates on loans. The aid plan only applies to companies that were in sound financial condition prior to July 2008, and is only available for loans contracted no later than December 31, 2010. The plan will provide for subsidized interest payments until December 31, 2012. After that date, market rates will be reinstated.
The second plan authorized by the European Commission provides direct aid of up to €500,000 per firm, and may also provide reimbursable grants, interest rate subsidies, subsidized public loans and public guarantees. This assistance may be granted until the end of 2010, and again, the plan only applies only to companies that were not struggling prior to July 2008.