State aid for Nová Huť has a green light
The exemption relates to:
<dir> <dir> </dir></dir>- An operational credit provided by Konsolidační banka Praha in total amount of CZK 750 million,
- Assignment of credit receivables of Česká konsolidační agentura from company Nová Huť (hereinafter “NH”) in nominal amount of CZK 3800 million by company LNM Holdings N.V. for USD 10.86 million,
- Reimbursement of NH´s obligation resulting from emitted debentures in amount of CZK 1254 million by Česká konsolidační agentura,
- Remission of penalty from VAT by the Ministry of Finance, which constitutes state aid in amount of CZK 93.779743 million.
- Remission of a part of the costs of execution in amount of CZK 3 million from the total amount of CZK 14.152110 million by the Ministry of Finance, which constitutes state aid in amount of CZK 3 million,
“It was not possible to approve state aid to the area of steel industry for the reason of non-existence of an exemption for the Czech steel industry approved by the European Union,” said the Chairman of the Office, Mr. Josef Bednář, who had approved the aid to Nová Huť under certain conditions.
The providers of state aid (the Ministry of Finance and the Ministry of Industry and Trade) shall ensure that provision of state aid is fully harmonised with the conditions stipulated in the document Joint position of the EU of 22 October 2002. Further, a time schedule for implementation of restructuring scheme for NH will be elaborated, including the plan for reduction of capacities and the document, approved by the European Commission will be, alike the modified business plan of the company, submitted to the Office before the end of the next year.
Before the end of 2003, the Office should be, according to the stipulated conditions, submitted also an evaluation report on the course of restructuring of the company, which will be updated every following six months until 1 March 2007. The last condition of the decision stipulates that the experts authorised by the European Commission and the Office must be allowed to enter the estates of Nová Huť and they must be given the possibility to inspect its trade books and other business records, make extracts from them and require an on-spot explanation.
Press and Information Department
2024-04-22 / Conference on State Aid 2024 - registration launched The next edition of the State Aid Conference of the Czech Office for the Protection of Competition (Office) will be held on 12 and 13 June 2024. The Conference, which is one of the most important Czech...
2023-06-28 / The Office has Published the English Version of Its Annual Report 2022 The Office for the Protection of Competition (hereinafter referred to as "the Office") has published the English version of its Annual report for 2022. In the publication you will find complete statistical...
2022-10-10 / Representatives of Competition Authorities Discussed the Economic Crisis and Approach to Green Policy at the European Competition Day in Prague On 10 October 2022, as part of the Czech Presidency of the Council of the European Union, the international conference European Competition Day was held in Prague, which was organised by the Office for...
2022-07-29 / Annual Report 2021 The Office for the Protection of Competition (hereinafter referred to as “the Office”) publishes the English version of its Annual Report for the year 2021, during which it not only celebrated 30...
2022-05-25 / Conference on State Aid Law This year, the Office for the Protection of Competition (hereinafter referred to as "the Office") is once again organising its traditional conference on State aid law. The conference will take place...
2022-03-24 / Temporary Crisis Framework for the provision of State Aid to cope with the economic consequences of the Russia´s invasion of Ukraine The European Commission adopted a temporary crisis framework to allow Member States to use the flexibility set out in State aid rules, and, thus, support the economy affected by the impacts of the Russia’s...
2021-09-22 / The Office for the Protection of Competition commemorated 30 years of its existence at a celebratory conference The Office for the Protection of Competition (hereinafter referred to as ''the Office'') celebrated 30 years of its existence today with a celebratory conference held at the Liechtenstein Palace in Prague...
2021-09-01 / Annual Report of the Office for the Protection of Competition 2020 The Office for the Protection of Competition has published the Annual Report, summarising its notable activities in 2020 and outlining its agenda for 2021, the year in which the Office celebrates its...
