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The Commission approved the guarantee package
On 18 December,
The specificity of the program lies in the fact that the debt for which the guarantee is received is highly collateralised, which goes beyond what has been seen in other cases. The guarantee program is structured around a special purpose vehicle that supplies financing to NordLB via securities with a maximum maturity of three to five years, backed by a very good, diversified guarantee pool of assets that is constantly reviewed. In so far that the maximum maturity may go up to five years this is justified by the structure of NordLB's liabilities.
The German Länder of Lower Saxony and Saxony-Anhalt would provide state guarantees on the securities and would receive a market-oriented remuneration, in line with the recommendations of the European Central Bank. The Commission found that the program involved state aid to NordLB.
The period during which securities may be issued under the guarantee program is limited to six months and the scope of the guarantee is limited to new, short or medium term debt. Finally,