Steel company Celsa Steel first in the UK received financial aid funded by taxpayers in the framework of the project Birch, designed for companies struggling with the crisis of coronavirus.
Labour welcomed the loan, and urged Ministers to conclude more agreements with industry, to prevent the wave of mass layoffs.
under the loans, which is expected to be fully repaid, the company must fulfill a number of legally binding conditions, including obligations to protect jobs and reduce greenhouse gas emissions.
it is believed that loans Birch Project also will include a condition that the British government will take a stake in the company, if loans are not returned.
the aid Package of 30 million pounds the amount of support is relatively small compared to what other companies request. For example another steel company Tata Steel < / span>requested from the government 500 million pounds, and the company, Jaguar Land Rover Limited - £ 1 billion.
At the same time, this funding opens door to direct funding of strategically important enterprises of the UK taxpayers, which was prohibited by the rules of the European Union.
