The Plenary Session of the Parliament passed on Thursday a law for the provision of state guarantees amounting to €1 billion for loans to companies and self-employed, which have been affected by the coronavirus pandemic. A total of 52 deputies voted in favor, while there were 2 abstentions. At the same time, the Parliament voted five amendments to the Government bill.

Ruling party DISY voted against all the amendments, expressing concern that the law could be dysfunctional and might be rejected by the EU.

According to the amendments, eligible companies and self-employed persons should not proceed with any dismissal of staff, for a period up to six months from the date of granting the loan.

Also € 550 million are allocated for loans to Small and Medium Enterprises and €150 million for loans to Large Enterprises.

The Parliament also decided for the creation of a Monitoring Committee, for the implementation of the provisions of the Law and the Decrees issued under it and to coordinate their correct and effective implementation. The Committee is composed of the General Accountant or the Assistant General Accountant, who acts as Chairman of the Committee, a representative of the Ministry of Finance appointed by the Minister and two officials of the Central Bank, who are also appointed by the Minister upon a recommendation by Governor of the Central Bank. The Auditor General or a representative of him, will participate to the Committee as an observer.

In case a loan application is rejected by a credit institution, the eligible borrower may appeal to the Monitoring Committee, submitting a relevant complaint.

The Minister of Finance will also have the opportunity to issue a recommendation to credit institutions to suspend the payment of monthly installments by borrowers for a period of twelve months from the date of start of the loan agreement.