Under the program, public support will be in the form of loans with subsidized interest rates provided by the Ministry of the Sea, Transport and Infrastructure of the Republic of Croatia.

State aid: Commission approves Croatia's 45.4m-euro program to support the civil aviation sector
The European Commission has approved a 45.4m-euro (344m-euro) Croatian program to support companies operating in the civil aviation sector affected by the coronavirus pandemic. The program was approved on the basis of the Temporary Framework for state aid.

Due to the coronavirus pandemic and travel restrictions that Croatia and other countries had to impose in order to limit the spread of the virus, companies operating in the civil aviation sector have suffered significant operating losses and a sharp drop in turnover and profitability. The purpose of the measure is to support the activities of beneficiaries and their economic recovery and structural sustainability.

Under the program, public support will be in the form of loans with subsidized interest rates provided by the Ministry of the Sea, Transport and Infrastructure of the Republic of Croatia. The Commission has determined that the Croatian program is in line with the conditions set out in the Temporary Framework.

In particular, i. The maturity of the loans is limited to six years; ii. the amount of loans corresponds to the level foreseen in the interim framework; iii. loans relate to working capital needs; and iv. loan agreements will be signed by June 30, 2022 at the latest.

The Commission therefore concluded that the program was necessary, appropriate and proportionate to address the serious disturbances in the Member State's economy, in accordance with Article 107 (3) (b) of the Treaty on the Functioning of the European Union and the terms of the temporary framework. It therefore approved the measure in line with EU state aid rules.