Liquidity Measures
€40b Emergency Financing Package
EU Measure
The European Investment Bank has announced an emergency funding package to consist of:
- €20b of financing to be deployed in the form of dedicated guarantee schemes to banks;
- €10b in liquidity lines to banks to ensure working capital for small and medium sized businesses; and
- €10b in asset-backed securities purchasing programmes.
Eligibility
Small and mid-sized European businesses.
Further eligibility requirements to be announced.
Supervising Authority
European Investment Bank
Further guidance about the scheme is available here .
Details of how to apply to be announced.
Availability
To be announced
€25b Guarantee Fund
EU Measure
The European Investment Bank has announced that it will create a €25b guarantee fund, to be funded by EU member states.
The guarantee fund will allow the European Investment Bank to guarantee up to €200b of loans to businesses struggling due to the outbreak of COVID-19.
Eligibility
Private sector businesses in EU member states.
The guarantee fund will be used to:
- provide guarantees to commercial banks;
- provide guarantees to national guarantee schemes;
- provide counter-guarantees to national promotional institutions;
- provide support to small and medium sized businesses funded by venture capital funds;
- purchase asset-backed securities from banks so that they can provide new loans to small businesses; and
- provide financing to high-growth companies.
Further eligibility requirements to be announced.
Supervising Authority
European Investment Bank
Further guidance about the scheme is available here .
Details of how to apply to be announced.
Availability
To be announced
€5.2b Response Package
EU Measure
The European Investment Bank has announced that it will provide a €5.2b response package to tackle the COVID-19 pandemic outside of the EU.
Eligibility
The European Investment's Bank support package will involve:
- Financing and technical assistance to partners in 100 countries; and
- Short term health and business investment in Africa, Eastern and Southern Neighbourhood Countries, Western Balkans, Asia, and Latin America.
Supervising Authority
European Investment Bank
Further guidance about the scheme is available here.
Availability
To be announced
Pandemic Emergency Purchase Programme (PEPP)
EU Measure
The European Central Bank (ECB) has launched a €750b temporary asset purchase program of private and public sector securities.
Eligibility
Asset categories eligible to be purchased under the PEPP are the same as under the ECB’s existing asset purchase programme, being:
- Corporate Sector Purchase Programme (CSPP);
- Public Sector Purchase Programme;
- Asset-backed Securities Purchase Programme; and
- Third Covered Bond Purchase Programme.
Additionally, the ECB has indicated that it intends to:
- expand the range of eligible assets under the CSPP to non-financial commercial paper, thereby making all commercial paper of “sufficient credit quality” eligible for purchase under the CSPP; and
- expand the scope of “Additional Credit Claims” (debt securities which are not tradable bonds) which can be acquired under the PEPP.
Supervising Authority
European Investment Bank
Further guidance about the scheme is available here.
Availability
26 March 2020 to end of 2020 (or until such time as the ECB determines the COVID-19 pandemic to be over)
ECB Refinancing Operations
EU Measure
The ECB has announced that it will be making up to €3 trillion in liquidity available at a refinancing rate of -0.75%.
Eligibility
Eligibility requirements to be announced.
Supervising Authority
European Central Bank
The ECB's press release about this scheme is available here.
Details of how to apply to be announced.
Availability
To be announced