The EU Commission approves State aid in the banking sector (Bankgesellschaft Berlin)

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References

EU Commission, Bankgesellschaft Berlin, Decision No. C28/2002, 18 February 2004

EU Commission, Bankgesellschaft Berlin, Decision No. C28/2002, Press Release, 18 February 2004

"Enforcement of State aid control in the banking sector: Bankgesellschaft Berlin AG"* On 18 February 2004, following an extensive investigation, the Commission decided to approve the restructuring aid for the ailing group Bankgesellschaft Berlin AG worth almost € 10 billion. This amount included, first, the capital injection of roughly _ 1.8 billion by the Land Berlin into BGB and, secondly, the provision of the guarantees to cover BGB‘s risks from the old real estate business with an economic value of € 6.1 billion (the theoretical maximum amount of nominally € 21.6 billion is based on legal provisions and supervisory rules but is unrealistic under pessimistic assumptions). Thirdly, it includes the repayment agreement between the Land Berlin and BGB of December 2002 regarding a

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Authors

  • European Commission - DG COMP (Brussels)
    Belgium 6 contributions 7419 visits
  • European Commission DG ENER (Brussels)
    Belgium 7 contributions 2484 visits

Quotation

Elke Graeper, Stefan Moser, The EU Commission approves State aid in the banking sector (Bankgesellschaft Berlin), 18 February 2004, e-Competitions February 2004, Art. N° 36886

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