The CIRSS has been approved by the European Commission on 14 May 2020 under the Temporary Framework for State Aid measures to support the economy in the current COVID-19 outbreak. The interest rate subsidy will apply automatically to all recipients of working capital loans approved by accredited commercial banks under the CGS.
Through the CIRSS, all beneficiaries under the CGS are eligible for a grant of up to 2.5 percentage points on the interest on the loan for the initial two years of the loan. The borrower has to pay an interest rate of at least 0.1% on the loan, net of the guarantee fee. By way of example, if the bank interest rate is 2.5%, for the first two years, the borrower pays 0.1% plus the applicable guarantee fee. If the bank interest rate is 3.5%, for the first two years, the borrower pays 1% plus the applicable guarantee fee.