14 December 2012

Commission approves prolongation of the Danish bank support schemes

The European Commission has authorised, under EU state aid rules, the prolongation of a Danish scheme for the winding-up of banks and of a guarantee scheme for merging banks until 30 June, 2013.

Both schemes aim at enabling market-based solutions for ailing banks, be it via an orderly winding-down or by keeping a bank in business by means of a merger.

The Commission found that, in the persisting difficulties on the financial markets especially small and medium-sized banks in Denmark experience difficulties to access market funding and concluded that the schemes constitute an appropriate response.

The Commission initially approved the winding-up scheme in September 2010. This scheme was further amended in August 2011, introducing the compensation scheme, and in December 2011, introducing two further mechanisms to support the sale of ailing banks. The merger scheme was initially adopted in February 2012 (see IP/12/144).

Press release (midday express 14/12/12)

© European Commission