COVID-19 pandemic: ESA approves renewal and amendments to Icelandic closure grant scheme

The EFTA Surveillance Authority (ESA) has today approved renewal and amendments of an Icelandic grants scheme that provides support to companies and self-employed experiencing income losses as a result of the ongoing COVID-19 pandemic.

The aim of the scheme is to contribute to the continuation of economic activity by undertakings that have suffered income losses due to the pandemic and related public containment measures. ESA initially approved the scheme in November 2020.

Recent measures put in place by the Icelandic authorities to contain the spread of the virus, which include the mandatory closing of bars, night clubs and arcades, have led to liquidity problems for companies and self-employed. Iceland is therefore renewing and amending the closure grant scheme to provide continued support to those undertakings.

ESA has today approved a renewal of the scheme with a duration until 30 June 2022.

In addition, ESA has approved an increase of the maximum total aid amount a company or those self-employed may receive. This cap is now set to ISK 330 million (approx. EUR 2.3m).

Iceland notified the measures to ESA on 26 January 2022.

You can read ESA's decision here.

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