Withdrawal from the non-repayable financial contribution agreement is a unilateral termination of the contractual relationship between the provider and the recipient. The provider resorts to it mainly in the event of a material breach of conditions – on discovering false information in the application, a serious irregularity, failure to start implementation within the set deadline, or repeated failure to meet obligations. The recipient may also withdraw, typically when the project can no longer be carried out, for example due to the loss of co-financing or an unsuccessful procurement. The consequence for the money is always the same: funds provided so far are generally returned, with default interest in the case of a culpable breach, and the project is not completed. If you see that the project is not feasible, it is more advantageous to initiate termination sooner, before more funds that you would have to return are drawn down.
See also: Agreement on the provision of a non-repayable financial contribution (NFP), Return of funds, Irregularity.
