The COVID-19 Crisis Management Fund and the long road to disbursement
The COVID-19 Crisis Management Fund ("Fund") is currently endowed with up to EUR 4 billion (Aid II - COVID-19 Fund). However, the Federal Government has already announced a massive increase in the Fund's resources.
Irrespective of this, adequate “technical provisions” must be established so that the Federal Minister of Finance (BMF) can disburse fund resources to the respective federal ministries. They should then take the necessary measures in connection with the management of the COVID-19 crisis (Aid II - COVID-19 funds / measures).
In a first step, the BMF issued – by ordinance on 17 March 2020 – guidelines for the granting of financial resources from the Fund (so-called “COVID-19-Fonds-VO”, Federal Law Gazette II No. 100/2020). The BMF will disburse the Fund's resources to individual federal ministries in accordance with a more closely regulated disbursement procedure and in accordance with evidence of compliance with (at least) four specified disbursement conditions. The disbursement will be effected in agreement with the Vice-Chancellor. This ordinance shall expire at the end of 31 December 2020.
Further steps will have to follow and we will continue to report.
Please note: This newsletter merely provides general information and does not constitute legal advice of any kind from Binder Grösswang Rechtsanwälte GmbH. The newsletter cannot replace individual legal consultation. Binder Grösswang Rechtsanwälte GmbH assumes no liability whatsoever for the content and correctness of the newsletter.
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