UK markets closed

EU approves German guarantees for companies against coronavirus epidemic

FILE PHOTO: Executive Vice-President Margrethe Vestager presents the EU executive's economic response to the coronavirus epidemic, in Brussels, Belgium

BRUSSELS (Reuters) - The European Commission said on Tuesday it had approved a German state aid scheme for guarantees on loans for companies affected by the coronavirus epidemic.

"The objective of the measures is to provide companies with liquidity to help safeguard jobs and continue their activities in these difficult times," Commission Executive Vice-President Margrethe Vestager said in a statement.

The German scheme is open to all companies. It enables the granting of guarantees on loans at favourable terms to help businesses cover immediate working capital and investment needs.

(Reporting by Jan Strupczewski)