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EU approves Italian aid scheme to support economy in coronavirus outbreak

UN refugee agency halts work at Libya facility

The European Commission says it has approved an Italian aid scheme to support the economy in the context of the coronavirus outbreak.

The scheme, according to the EU, was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

It said the total budget of the measure communicated by the Italian authorities is of up to €200 billion.

Margrethe Vestager the Executive Vice-President, in charge of competition policy, said: “The Italian guarantee scheme with a budget of up to 200 billion euro will enable public guarantees on new loans and on refinancing of existing loansfor all businesses, including large companies.

Together with the other Italian scheme to support self-employed workers, SMEs and mid-caps affected in the context of the coronavirus outbreak, the scheme will help companies cover their immediate working capital and investment needs in these difficult times.

We continue working closely with Member States to ensure that national support measures can help mitigate the effects of the coronavirus outbreak”

The Italian support measure
Italy notified to the Commission under the Temporary Framework a guarantee scheme for new working capital and investment loans granted by banks, to support companies affected by the coronavirus outbreak. The aid will be granted by State-owned SACE, through financial institutions, to companies affected by the coronavirus outbreak. The aim of the scheme is to limit the risks associated with issuing loans to companies that are severely affected by the economic impact of the coronavirus, helping businesses to cover their immediate working capital or investment needs, in order to ensure the continuation of their activities. The Italian authorities have communicated a total budget of up to €200 billion for the scheme.

The Commission found that the measure is in line with the conditions set out in the Temporary Framework. In particular, (i) the underlying loan amount per company is limited to what is needed to cover its liquidity needs for the near future, (ii) the guarantees will only be provided until the end of this year, (iii) the guarantees are limited to a maximum of six years, and (iv) guarantee fee premiums are in line with the levels foreseen by the Temporary Framework.

READ  Africans cautioned against accepting  inaccurate information about COVID 19 prevention, treatment

Global Forum on Migration and Development

The measure also includes safeguards to ensure that the aid is effectively channelled by the financial institutions to the beneficiaries in need.

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.On this basis, the Commission approved the measures under EU State aid rules.

Background
The Commission has adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak.

The Temporary Framework, as amended on 3 April 2020, provides for the following types of aid, which can be granted by Member States:

(i) Direct grants, equity injections, selective tax advantages and advance payments of up to €100,000 to a company active in the primary agricultural sector, €120,000 to a company active in the fishery and aquaculture sector and €800,000 to a company active in all other sectors to address its urgent liquidity needs.

Member States can also give, up to the nominal value of €800,000 per company zero-interest loans or guarantees on loans covering 100% of the risk, except in the primary agriculture sector and in the fishery and aquaculture sector, where the limits of €100,000€ and €120,000 per company respectively, apply.

(ii) State guarantees for loans taken by companies to ensure banks keep providing loans to the customers who need them. These state guarantees can cover up to 90% of risk on loans to help businesses cover immediate working capital and investment needs.

(iii) Subsidised public loans to companies with favourable interest rates to companies. These loans can help businesses cover immediate working capital and investment needs.

(iv) Safeguards for banks that channel State aid to the real economy that such aid is considered as direct aid to the banks’ customers, not to the banks themselves, and gives guidance on how to ensure minimal distortion of competition between banks.

READ  First comprehensive global analysis of COVID-19 travel restrictions, border closures weighs future impacts on mobility

(v) Public short-term export credit insurance for all countries, without the need for the Member State in question to demonstrate that the respective country is temporarily “non-marketable”.

(vi) Support for coronavirus related research and development (R&D) to address the current health crisis in the form of direct grants, repayable advances or tax advantages. A bonus may be granted for cross-border cooperation projects between Member States.

(vii) Support for the construction and upscaling of testing facilities to develop and test products (including vaccines, ventilators and protective clothing) useful to tackle the coronavirus outbreak, up to first industrial deployment.

This can take the form of direct grants, tax advantages, repayable advances and no-loss guarantees.

Companies may benefit from a bonus when their investment is supported by more than one Member State and when the investment is concluded within two months after the granting of the aid.

(viii) Support for the production of products relevant to tackle the coronavirus outbreak in the form of direct grants, tax advantages, repayable advances and no-loss guarantees.

Companies may benefit from a bonus when their investment is supported by more than one Member State and when the investment is concluded within two months after the granting of the aid.

(ix) Targeted support in the form of deferral of tax payments and/or suspensions of social security contributions for those sectors, regions or for types of companies that are hit the hardest by the outbreak.

(x) Targeted support in the form of wage subsidies for employees for those companies in sectors or regions that have suffered most from the coronavirus outbreak, and would otherwise have had to lay off personnel.

The Temporary Framework enables Member States to combine all support measures with each other, except for loans and guarantees for the same loan and exceeding the thresholds foreseen by the Temporary Framework.

It also enables Member States to combine all support measures granted under the Temporary Framework with existing possibilities to grant de minimis to a company of up to € 25,000 over three fiscal years for companies active in the primary agricultural sector, €30,000 over three fiscal years for companies active in the fishery and aquaculture sector and €200,000 over three fiscal years for companies active in all other sectors.

READ  About 12,000 Africans arrive Europe via Italian waters in less than four months of 2020

At the same time, Member States have to commit to avoid undue cumulation of support measures for the same companies to limit support to meet their actual needs.

Furthermore, the Temporary Framework complements the many other possibilities already available to Member States to mitigate the socio-economic impact of the coronavirus outbreak, in line with EU State aid rules.

On 13 March 2020, the Commission adopted a Communication on a Coordinated economic response to the COVID-19 outbreak setting out these possibilities. For example, Member States can make generally applicable changes in favour of businesses (e.g. deferring taxes, or subsidising short-time work across all sectors), which fall outside State Aid rules.

They can also grant compensation to companies for damage suffered due to and directly caused by the coronavirus outbreak.
The Temporary Framework will be in place until the end of December 2020. With a view to ensuring legal certainty, the Commission will assess before that date if it needs to be extended.

The non-confidential version of the decision will be made available under the case number SA.56963 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

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IOM launches open South America portal

International Organisation of Migration (

Buenos Aires – IOM, the International Organization for Migration, this week launched the Open South America Portal, a web platform providing migrants and stakeholders in the region with access to reliable and timely information on human mobility restrictions and health and safety measures adopted by governments in the COVID-19 pandemic.

Open South America, available in SpanishEnglish and Portuguese, shares official information by country on the latest measures, including border restrictions, quarantine requirements and COVID-19 tests for migrants and travellers.

The portal also provides updated information on authorized entry points and key places for travellers and migrants, such as consulates, migrant care and health centres, airports, border crossings points and ports. This information can be explored through an interactive map.

The platform, funded by the IOM Development Fund, is also accessible to vulnerable migrants who may be stranded or are at risk of receiving misinformation on migration.

Since the start of the COVID-19 pandemic, South America has been one of the most impacted regions worldwide. According to the World Health Organization figures, as of 8 July 2021 there were 33,475,765 COVID-19 cumulative cases in the region, which represents 89 per cent of the total cases in Latin America, and 18 per cent of all infections recorded globally.

READ  Migrants' remittances drop by over  $100b - UN Chief 

Countries such as Brazil, Peru, Colombia and Ecuador all experienced severe outbreaks. For example, Brazil currently reports the third highest number of cumulative cases (18,855,015) and second highest death toll (526,892) globally.

“Open South America will facilitate orderly, regular and responsible migration in South America amid the uncertain times of COVID-19 and after the pandemic,” said Minister Ana Laura Cachaza, General Director of Consular Affairs of the Government of Argentina.

“Migrants’ access to up-to-date information through innovative online tools is essential considering the changing migration dynamic in the region due to the COVID-19 pandemic,” said Marcelo Pisani, IOM Regional Director for South America.

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29,000 Nigerians, Ghanaians, Somalians, other Africans migrated through the Mediterranean Sea to Europe in 2021 —IOM

The International Organisation for Migration has said that 29,000 individuals including Nigerians, Ghanaians, Somalians and other Africans have emigrated to Europe through the Mediterranean Sea this year.

About 13,000 were arrested by the coast guards and returned home while 761 migrants were said to have perished in the sea.

Disclosing this to journalists in Abuja on Friday, the Chief of Mission, IOM Nigeria, Mr Franz Celestin, said less than five per cent of migrants usually made it to Europe, adding that the vast majority stay in Africa.

He further said that a lot of migrants were trafficked within the Economic Community of West African States, adding that Mali was the number one destination point for trafficked Nigerian women.

Responding to questions on the number of people who have undertaken the perilous trip to Europe through the Mediterranean, the IOM Chief said, “A combination of unemployment and underemployment is pushing people to migrate.

READ  Six refugees among 137 killed in Niger’s recent attack

“In this year, 29,000 migrants from Sub-Sahara Africa have migrated to Europe through the Mediterranean. About 13,000 were intercepted by the coastguard while 761 died.”

International Organisation of Migration (

Celestin stressed the importance of tackling human trafficking which he said grossed about $150 billion annually.

“Traffickers make a lot of money and they would continue to do it until a coordinated response is evolved to stop them. We are collaborating with Interpol in this respect; we are connected to the Interpol i/247 database. We connected the MIDAS to the Interpol database where we pass the information on traffickers to the Interpol,” he stated.

Celestin explained that the IOM has been involved in the biometric registration of children in the North-East, noting that the agency has registered no fewer than 17,053 children in 18 different internally displaced person camps between 2019 and May 2021 in Borno State.

The agency chief also disclosed that IOM was involved in the G7 Famine Prevention and Humanitarian Compact for North-East.

READ  EU, IOM, UNHCR to support peaceful integration of refugees and migrants across Latin American, Caribbean communities affected by Covid-19

 

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For continued free access to the best and latest migration, trafficking, displacement and humanitarian reports including thorough investigative reports in these areas, we ask you to consider making a modest support to this noble endeavour.

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FG condemns killing of Nigerian footballer in UK

Kelvin

The Federal government has condemned the alleged killing of a Nigerian Footballer, Kelvin Igweani, by the UK police.

Recall that Igweani, a Nigerian Footballer, was shot dead by officers, who attended a call out to a house, where a child was found with serious injuries.

Reacting, Hon. Abike Dabiri-Erewa, Chairman/CEO, Nigerians in Diaspora Commission (NIDCOM), in Abuja on Wednesday described the incident as very unfortunate,and sad.

Dabiri-Erewa condoled with the family of the deceased and the Nigerian communities in the UK while praying that God grants rest to the soul of the departed.

“We call on the UK government for a thorough and proper investigation to be carried out on the incident,” the statement added.

Support Voice for African Migrants


Support VOICE FOR AFRICAN MIGRANTS journalism of integrity and credibility.

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best and latest migration, trafficking, displacement and humanitarian reports including thorough investigative reports in these areas, we ask you to consider making a modest support to this noble endeavour.

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READ  Africans cautioned against accepting  inaccurate information about COVID 19 prevention, treatment
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