EU executive clears Swedish 9.1 bln euros coronavirus aid

The European Union's state aid regulators approved on Thursday a Swedish scheme to grant 9.1 billion euros worth of support to small- and medium-sized companies hit by the coronavirus pandemic. The Brussels-based EU executive said in a statement it cleared the "scheme on new loans granted by commercial banks to support companies, mainly small and medium-sized enterprises (SMEs), affected by the coronavirus outbreak."

"The scheme aims at limiting the risk associated with issuing loans to those companies that are most severely affected by the economic impact of the current crisis, thus ensuring the continuation of their activity," it added. The bloc has relaxed state aid restrictions since the coronavirus hit the EU to help the 27 member states support their ailing economies amid a virtual lockdown of the continent, which is aimed at containing the spread of the respiratory disease but has also drastically curtailed economic activity.