The Commission has approved a loan of €320 million granted by Luxembourg for the restructuring of Kaupthing Bank Luxembourg S.A. The measure will contribute to the stability of the financial system while avoiding undue distortions of competition.
The Commission has approved a loan of €320 million granted by Luxembourg for the restructuring of Kaupthing Bank Luxembourg S.A. The measure will contribute to the stability of the financial system while avoiding undue distortions of competition.
Since the primary purpose of the loan was to compensate depositors with the Belgian branch of Kaupthing Bank Luxembourg SA, the Belgian State decided to help finance it to the tune of €160 million. Under the restructuring plan, deposits with the Belgian branch of Kaupthing Luxembourg were sold to Crédit Agricole Belgique/Keytrade Bank.
The Luxembourg‑based private bank part is to be taken over by UK investment fund Blackfish Capital. All these activities were sold to the highest bidder in a transparent tender procedure. The bank’s other assets will be wound up in a hive‑off vehicle and the revenue used to compensate creditors and repay the state aid.
© European Commission
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