If these additional loan requests are positively assessed by the Commission and approved by the Council, approximately EUR 292.6 billion will be committed
Thirteen EU member states, including Greece, have requested support with a loan, within the framework of the Recovery and Resilience Mechanism (RRF) of the European Recovery Fund, according to today’s (Friday) announcement by the European Commission.
The 31st of August was the deadline for submitting applications for loans from the European Recovery Fund (NextGenerationEU) born after the pandemic, totaling 750 billion euros, of which 385.8 billion euros were intended for support in the form of loans.
The European Commission today forwarded to the European Parliament and the Council the final overview of Member States’ requests for loans under the Recovery and Resilience Facility (RRF).
A total of 385.8 billion euros for support in the form of loans are available under the RRF. On the basis of the existing Council implementing decisions, seven Member States (Greece, Italy, Cyprus, Poland, Portugal, Romania and Slovenia) have already received support in the form of loans, amounting to approximately EUR 165.4 billion.
As part of the reviews of the recovery and resilience plans, and in line with the deadline of 31 August 2023 set in the RRF Regulation, four Member States requested additional loans to increase the loan support already granted to them (Greece, Poland, Portugal and Slovenia ) and six member states have now for the first time requested loans to be added to their support in the form of grants (Belgium, Czech Republic, Spain, Croatia, Lithuania and Hungary), totaling EUR 127.2 billion.
If these additional loan requests are positively assessed by the Commission and approved by the Council, around 292.6 billion euros will be committed (at current prices) loan support under the RRF. As a result, only around €93 billion in loan support was not requested by Member States, leading to an absorption of RRF loans close to 76%, the Commission points out.
As set out in Article 14(6) of the RRF Regulation, when a Member State’s loan request exceeds the threshold of 6.8% of that Member State’s 2019 Gross National Income (GNI) at current prices, the Commission will also take into account the justification provided by a Member State as to the occurrence of exceptional circumstances.
According to the Commission, this limit reaches or surpassed by Greece, Italy, Poland, Croatia and Romania.
Source: Skai
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