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)

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

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

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Phedon Nicolaides, 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), 17 March 2017, e-Competitions Bulletin March 2017, Art. N° 89880

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