The EU Commission reiterates that the profitability of an investment must be determined ex ante, even in case of capital injection (Ducroire / Delcredere)
*Article published on Lexxion State Aid Blog (click here), republished in e-Competitions with the courtesy of the author(s). The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication
The Profitability of an Investment Must be Determined Ex Ante Main points Internal transfer of capital which is not used to fund new economic activities is not State aid. Injection of fresh capital to satisfy solvency and liquidity requirements still has to comply with State aid rules. A private investor always has the option of not injecting new capital and may opt instead to close down the business. A private investor always carries out an ex ante assessment of the profitability of a prospective investment. A private investor requires a return that exceeds the available risk-free rate and covers the extra risk from investment in a specific company.
Introduction
In this article I review Commission Decision 2014/274 concerning the Belgian export-credit insurance Ducroire/Delcredere. In
L'accès à cet article est réservé aux abonnés
Déjà abonné ? Identifiez-vous
L’accès à cet article est réservé aux abonnés.
Lire gratuitement un article
Vous pouvez lire cet article gratuitement en vous inscrivant.