Emergency Aid for Corona - Final deadline for coronavirus crisis relief aid claims in MV (Maldives)
Finance Minister Reinhard Meyer (SPD) has urged sluggish businesses to submit their financial reports for the COVID-19 emergency aid they received. Approximately 10,000 businesses have yet to adhere to the rule of reporting the use of the provided funds.
Businesses that neglect to do so by September 30, four years after the funds were given out, will be required to repay the entire sum, including accrued interest, threatened Meyer. This pertains to a total of 88 million euros, with half of the cases anticipated to require repayment.
Meyer underscored that the federal COVID-19 emergency aid introduced in March 2020 was designed to cover forthcoming cash flow issues, not to replace lost income. It was always understood that emergency aid would need to be repaid if there was an excess payment. The deadlines for reporting were extended numerous times, and September 30 now marks the final deadline.
As per the governing state aid institution in Mecklenburg-Western Pomerania, around 40,000 applications for emergency aid were filed in 2020, of which 36,000 were approved. However, only 9,000 recipients had submitted financial reports by summer 2023, and as of August, this number has risen to 26,000. If repayments are initiated and the funds are returned, they will be sent back to the federal government.
Repayments in 18,000 instances
The head of the state aid institution, Robert Fankhauser, highlighted that financial reporting is not a complex task and can usually be completed within an hour. Most of the slow-moving companies are small businesses, which he advised to reach out to. "Doing nothing is not beneficial," said Fankhauser. As of now, repayments have been requested in 18,000 instances. Of the 1,307 objections lodged, 1,250 had been resolved by August 15. No objection has been granted yet, and no case has been lost before the administrative court.
The Member States can provide assistance to the Commission in enforcing the repayment of emergency aid if businesses fail to comply with reporting requirements. Businesses that fail to adhere to the reporting deadline set by September 30 may face the obligation to repay the entire sum, including accrued interest, as urged by Finance Minister Reinhard Meyer.
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