Support for Non-Performing Loans in Cyprus* Public assistance to households to pay for their mortgages is not State aid. Public assistance to enterprises to pay for their loans may be qualified as de minimis aid. Public assistance to households and de minimis aid to enterprises to pay for their loans are indirect aid to banks, which, however, falls outside the directive on bank recovery and resolution because it is not “extraordinary public financial support”. Introduction Paragraph 116 of the Commission’s Notice on the Notion of State Aid makes a distinction between “mere secondary economic effects that are inherent in almost all State aid measures” and “indirect” effects. Article 107(1) TFEU does catch aid that generates indirect advantages that flow through the direct recipients to
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The EU Commission finds a Cypriot State aid scheme for vulnerable households borrowers to be compatible with the internal market
* 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.
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