Common use of Subsidies Subject to Conditions Clause in Contracts

Subsidies Subject to Conditions. The Parties shall apply conditions to the following subsidies, in so far as they negatively affect trade or investment of the other Party or are likely to do so: (a) A legal arrangement whereby a government, directly or indirectly, is responsible to cover debts or liabilities of certain enterprises is allowed provided that the coverage of the debts and liabilities is limited as regards the amount of those debts and liabilities or the duration of such responsibility; (b) Subsidies to insolvent or ailing enterprises in various forms (such as loans and guarantees, cash grants, capital injections, provision of assets below market prices, tax exemptions) with a duration above one year are allowed provided that a credible restructuring plan has been prepared which is based on realistic assumptions with the view to ensuring the return of the insolvent or ailing enterprises within a reasonable time to long-term viability and with the enterprise contributing itself to the costs of restructuring.3, 4

Subsidies Subject to Conditions. The Parties Each Party shall apply conditions to the following subsidies, subsidies in so far as they negatively affect trade or investment of the other Party Party, or are likely to do so: (a) A a legal arrangement whereby a government, directly or indirectly, is responsible to cover for covering debts or liabilities of certain enterprises is allowed allowed, provided that the coverage of the debts and liabilities is limited as regards the amount of those debts and liabilities or the duration of such responsibility; (b) Subsidies subsidies to insolvent or ailing enterprises in various forms (such as including loans and guarantees, cash grants, capital injections, the provision of assets below market prices, and tax exemptions) with a duration above of more than one year are allowed allowed, provided that a credible restructuring plan has been prepared which is based on the basis of realistic assumptions with the a view to ensuring the return of the insolvent or ailing enterprises within a reasonable time to long-term viability within a reasonable time and with the enterprise contributing itself to the costs of restructuring.3, 4restructuring. (1) (2)