The European Commission has approved a €400 million scheme to support enterprises in the Netherlands that provide package travel and linked travel arrangements within the context of the COVID-19 outbreak.

The scheme was approved under the State Aid Temporary Framework, StudyinPoland.Info reports.

“This €400 million Dutch loan scheme will enable companies providing package travel and linked travel arrangements in the Netherlands to refund consumers the value of such vouchers in cash. We continue working in close cooperation with the Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules,” Executive Vice President Margarethe Vestager said.

In a press release, the Commission explained that companies offering travel packages and other arrangements in the Netherlands and the other Member States had provided the so-called “Corona vouchers” to the users whose travel package got cancelled from the beginning of the Coronavirus outbreak. Since the outbreak had long-term effects on the travel sector, most of these vouchers were not replaced with another travel package later on.

The loan scheme focuses on authorising the receiver to provide equal cash refunds in the same value as the voucher.

The scheme will be applied in the entire territory of the Netherlands and will be managed by Stichting Garantiefonds Reisgelden, a non-profit organisation based in Rotterdam, the goal of which is protecting travellers from bankruptcy.

The beneficiaries will be qualified for a loan that covers a maximum of 80 per cent of their vouchers, not any higher than 50 million per beneficiary. Other liquidity requirements except for the redemption of the Corona vouchers will not be supported by the scheme.

The Commission revealed that the Dutch scheme is in accordance with the requirements outlined in the Temporary Framework. Specifically, the contracts of the loan will be signed by December 31, 2021, at the latest, and the loan may not be granted to medium and large companies that were already going through financial hardship on December 31, 2019.

The Commission determined that this measure is essential and in proportion to recovering the Netherland’s economy, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

The Commission adopted a Temporary Framework in March 2020, which provides different types of aids granted by the Member States. The three main ones include:

• Direct grants, capital contributions, selective tax advantages, and advance payments of up to €225,000 for companies in the agricultural sector, €270,000 for companies in fishery and aquaculture, and €1.8 million to companies in other sectors in need.
• State guarantees for companies’ loans to ensure that banks will keep providing loans to those who need them.
• Funding to public loans with favourable interest rates.

The Temporary Framework will be effective until December 2021. However, before this date, it will be reassessed if the framework needs to be extended.

Previously, the Commission approved Finland’s financial aid of €350 million for Finavia in order to compensate the company for the damages suffered from the Coronavirus pandemic. Another €511 million aid was approved to reimburse Italy’s commercial rail operators.