The European Commission has authorised, under EU state aid rules, the prolongation of a German aid scheme for banks until 30 June, 2013.
The scheme covers guarantee, risk assumption, and recapitalisation measures in favour of banks operating in Germany. The conditions of the original scheme, as last amended on 29 June 2012, remain largely the same. New elements have been introduced with regard to the financing of the scheme and the remuneration of guarantees for debt instruments with a maturity longer than three years (step-up clause). Moreover, the prolonged scheme is reserved for banks, while other financial institutions are no longer eligible for support.
The Commission found the prolongation of the measures... to be in line with its guidance on state aid to banks during the crisis. In particular, the prolonged measures are well targeted, proportionate and limited in time and scope. The Commission has therefore concluded that they represent an appropriate means of remedying a serious disturbance in the German economy and as such are compatible with Article 107(3)(b) of the Treaty on the Functioning of the European Union.
Press release (midday express 7.12.12)
© European Commission
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