EU okays €44bn Italian recapitalisation scheme for virus-hit companies

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European flags flutter in the wind in front of the EU institutions in Brussels on March 7, 2019. (Photo by EMMANUEL DUNAND / AFP) (Photo credit should read EMMANUEL DUNAND/AFP via Getty Images)

Brussels, Sept. 17, 2020 (Reuters/Naija247news) EU competition regulators on Thursday gave the green light to a 44-billion-euro (51.9 billion dollars) Italian recapitalisation scheme for virus-hit large companies.

They noted it would support the Italian economy and labour market.

According to the regulators, the scheme consists of four measures involving recapitalisation instruments, in particular equity and hybrid capital instruments such as convertible bonds and subordinated debt.

They also aimed at large companies that saw a sharp fall in this year’s revenues.

According to the European Commission, the scheme complies with its conditions for state aid granted to companies affected by the coronavirus outbreak.

“This include ban on dividends, bonuses and acquisitions and an adequate remuneration to Italy for the aid,’’ the commission said.

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