State aid: Commission approves German asset relief scheme
31 July 2009
It provides an efficient tool for addressing the uncertainty regarding the quality of banks' assets.
Competition Commissioner Neelie Kroes said: "Thanks to an extensive and fruitful cooperation between the German authorities and the Commission, the German asset relief scheme now provides an efficient tool for addressing the uncertainty regarding the quality of banks' assets. This will contribute to maintaining market confidence. Yet, restructuring is likely to be necessary in a significant number of cases."
Germany committed to notify either a viability review or a restructuring plan which will be assessed in line with the applicable guidelines, both supplemented by the valuation within three months from the implementation of any asset relief. Furthermore, should Germany intend to prolong the measure beyond the initial six months validity, it would again be subject to a Commission investigation. Moreover, Germany has to report every six months to the Commission on the implementation of the measure.
© European Commission
