Sale of State-Owned Bank* The sale of a public asset is free of State aid when it is open, transparent, non-discriminatory, unconditional and the award is made to the highest binding and credible offer. Introduction The rules on State aid to financial institutions and banks have become very strict. Owners and creditors have to be bailed in [the so-called burden sharing] and the institution that finds itself in trouble [which in practice means with too many non-performing loans and too little statutory capital] must be “resolved”. Often resolution results in the sale of the “good” assets of the bank. The Commission in decision SA.32745 concerning the sale of parts of Kommunalkredit, an Austrian bank, had to examine the sale procedure for possible State aid. Austria sold parts of bank
The EU Commission finds that the sale of part of an Austrian bank is not State aid according to the market economy operator test (Kommunalkredit Austria)
Access to this article is restricted to subscribers
Already Subscribed? Sign-in
Access to this article is restricted to subscribers.
Read one article for free
Sign-up to read this article for free and discover our services.