We hope the mentioned good practice case will encourage other governments and policymakers to do the same in their respective countries. Exhibitions and trade shows are the fastest of fast-tracks to economic recovery once the coronavirus crisis has passed and will deliver the best return on investment now. We sincerely thank UFI, EEIA, and EMECA for providing valuable information.
CASE STUDY: LITHUANIA
Lithuania was one of the most aiding countries when it came to the meetings and exhibitions industry. Their financial aid helped the industry persevere.
EMERGENCY HELP
Expenditure measures:
On 30 April, a Lithuanian rent compensation scheme to support tenants operating in certain sectors, including retail, hotels, restaurants, culture and sports. The scheme will be accessible to companies operating in certain sectors defined by Lithuania, including retail, hotels, restaurants, culture and sports and whose annual turnover in the previous year does not exceed €50 million. The public support will take the form of direct grants to cover part of the rents due by those companies. The scheme aims at mitigating the sudden liquidity shortages that tenants operating in certain sectors are facing due to the measures imposed by the Lithuanian State to limit the spread of the coronavirus.
On 25 May 2020, a Lithuanian scheme, with an estimated budget of €10 million, to support cultural and art institutions and organisations, in the context of the coronavirus outbreak. The measure, which will take the form of direct grants, is intended to support the creation of new products and/or services by cultural and art institutions and organisations in the period between 19 March and 31 December 2020. The objective of the scheme is to help ensure the continuation of activities of these organisations during and after the outbreak. It also aims at promoting the creation of digital cultural products and services, in view of the physical restrictions and other adjustments introduced by the Lithuanian government to limit the spread of the coronavirus.
Measures related to public guarantees:
On 26 May 2020, Lithuanian planned to set up a fund with a target size of up to €1 billion that will invest through debt and equity instruments in medium-sized and large enterprises active in Lithuania was affected by the coronavirus outbreak. Under the scheme, the support will take the form of subsidised debt instruments and recapitalisation instruments. The State will provide an initial investment of €100 million in the fund and will guarantee bonds up to €400 million that will be issued to raise additional capital for the fund. The State’s total investment in the fund may therefore increase up to €500 million. The fund will also aim to attract private investments for up to an additional €500 million. Private investments will be made on different terms with respect to the State: the risk-sharing arrangements will be determined through an open, transparent, nondiscriminatory call in order to minimise any possible aid to private investors.
RESTART HELP
Expenditure measures:
On 11 September 2020, Lithuania announced a €1 million Lithuanian scheme to support tour operators that had to repatriate travellers in the context of the coronavirus outbreak. The public support took the form of direct grants and amounted to 75% of the expenses incurred by the operator to repatriate travellers from abroad between 26 February and 31 March 2020. The purpose of the measure was to mitigate the sudden liquidity shortages that the affected tour operators faced because of the repatriation costs.
RECOVERY HELP
Expenditure measures:
On 12 April 2021, the Commission approved a €120 million aid scheme to support companies that had to suspend or reduce their activities due to government-imposed restrictive measures aimed at limiting the spread of the coronavirus. Under the state aid Temporary Framework, the scheme is open to companies active in the sectors most affected by the outbreak except agriculture, forestry, fishing, credit, insurance, pension funding, and the financial ones. The aim of the scheme is to help the beneficiaries address their liquidity needs and continue their activities during and after the outbreak.
To find out more about Lithuania’s aid scheme, click here.
