Virus-hit companies bailed out by EU governments will face a ban on dividends, share buybacks and bonuses for so long as the state holds a stake in them, the European Commission said on Friday.
The EU executive, which has relaxed the bloc's strict state aid rules since March, also said governments could grant subordinated loans on favorable terms to companies affected by COVID-19. Both measures aim to help firms avoid insolvency.
European Competition Commissioner Margrethe Vestager said that as the crisis evolved, many businesses would need capital to stay afloat.
"If member states decide to step in, we will apply today's rules to ensure that taxpayers are sufficiently remunerated and their support comes with strings attached," she said in a statement.