The new credit line with reduced interest rates runs from May 1st. The basis is the temporary EU framework for state aid for crisis management against the background of the Russian war against Ukraine.
The EU Commission has approved Austria’s two billion euro state aid scheme to support Wien Energie. The Commission had come to the conclusion that the Austrian regulation was necessary, suitable and appropriate “to remedy a significant disruption in the economy of a Member State,” said the EU authority on Tuesday.
The basis is the temporary EU framework for state aid for crisis management against the background of the Russian war against the Ukraine. On this basis, Austria has notified the EU Commission of the aid scheme in the amount of 2 billion euros, with which companies in view of the Russian war against the Ukraine are to be supported.
Loans can be accessed until the end of April 2025
According to the EU Commission, Wien Energie has been struggling with liquidity bottlenecks since August 2022 due to the sharp rise in gas and electricity prices. Under this measure, the aid will be granted in the form of a credit line with a reduced interest rate, which will run from 1 May. The credit line is financed by the City of Vienna, the only indirect owner of the company, either from its own funds or from federal funds. The EU authority also announced that loans can be accessed from this until April 30, 2025.
The new line of credit will replace three existing lines of credit that will then be closed. They were granted in 2022 and have already been repaid in full. For all three existing credit lines, the EU Commission found that they met the requirements of the temporary crisis framework applicable at the time and were therefore compatible with the internal market. The new measure is intended to ensure that Wien Energie has sufficient liquidity to secure its trading activities on the energy markets.
The Commission found that the scheme notified by Austria is compliant as the loan term will not exceed six years, the credit line interest rates are in line with the minimum rates set in the Temporary Framework and the aid amount is based on liquidity needs is calculated by Wien Energie for hedging trading activities on the energy markets for a period of twelve months.
(WHAT)