New State Aid Regulation Adopted in Slovenia

New State Aid Regulation Adopted in SloveniaNew state aid regulation was adopted in Slovenia by the local authorities with the aim of supporting companies and cooperatives in financial difficulty. According to this new law, the Slovenian companies which face economic problems can access support mechanisms without notifying the European Commission. Our lawyers in Slovenia can give you an in-depth presentation of the provisions of this new state aid regulation.  


Slovenian companies eligible for state aid

Through the provisions of the new state aid regulation, there are three general conditions that a Slovenian company must comply with in order to be eligible for financial support. These are the following:

•    To be in financial difficulty – the balance sheets and tax documents of the company are sustainable proof;
•   To have a systematic role in the development of the Republic of Slovenia, irrespective of the economic sector or region – its dissolution would lead to social problems, unemployment, distortion of competition, market disruption or the loss of important products or services;
•    There are no liquidation or insolvency procedures directed against the company.

Under the new state aid law in Slovenia, several companies are excluded from the financial help provided by the government. These include companies operating in the coal and steel sectors, financial institutions (banks or insurance companies) established through the liquidation or takeover of another company and the newly established companies which have been operating on the market for less than three years. Our attorneys in Slovenia can advise you on any matter related to commercial legislation and tell you if your company is eligible for state aid.

The content of the new state aid law

Three types of support measures are defined within the State Aid Act: rescue aid, restructuring aid and temporary restructuring support. The latter is granted only to SMEs, including those Slovenian companies where the state holds 25% or more of the shares and voting rights. The state aid is limited to a period of maximum 18 months. The basic principle contained in the new state aid legislation in Slovenia is the burden sharing. This translates into a full absorbance of losses by both shareholders and subordinated creditors, if this is applicable. For those companies which are denied state aid, an alternative scenario and a cash flow projection are introduced by this new legislation.

Please contact our law firm in Slovenia if you need complete information about the new provisions of the State Aid Act.