EU okays 400-mln-euro Portuguese scheme for virus-hit companies

The European Commission on Friday approved a 400-million-euro ($424 million) Portuguese recapitalisation scheme for companies impacted by the COVID-19 pandemic, similar to other measures adopted by governments across the European Union. The Portuguese scheme is made up of equity instruments including ordinary and preferred shares, hybrid instruments such as convertible bonds and also a combination of equity and hybrid instruments.

The European Commission on Friday approved a 400-million-euro ($424 million) Portuguese recapitalization scheme for companies impacted by the COVID-19 pandemic, similar to other measures adopted by governments across the European Union. The Portuguese scheme is made up of equity instruments including ordinary and preferred shares, hybrid instruments such as convertible bonds, and also a combination of equity and hybrid instruments. Aid for a company is capped at 10 million euros.

"This 400 million euro Portuguese scheme will enable Portugal to support these companies by helping them meet their liquidity and solvency needs and ensuring the continuity of their activities," Commission Vice President Margrethe Vestager said in a statement. ($1 = 0.9434 euros)