The EU Commission approves State guarantee granted by the Austrian government in the banking sector (BAWAG-PSK)

Boeshertz, Daniel

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27 Jun 2006

The EU Commission approves State guarantee granted by the Austrian government in the banking sector (BAWAG-PSK)

KEYWORDS

Reference

EU Commission, BAWAG-PSK, State aid n°50/2006, 27 June 2006

Enforcement of State aid control in the banking sector: BAWAG-PSK* On 27 June 2006 the Commission decided to approve a State guarantee of € 900 million granted to BAWAG-PSK by Austria [1]. The guarantee provided collateral for specific bad loans with the consequence that the assets remained valuable and no value adjustments had to be carried out. The exit of inefficient firms is a normal part of the operation of the market. Therefore, the provision of rescue or restructuring aid to firms in difficulty may only be regarded as legitimate subject to certain conditions. The Commission authorizes restructuring aid only under the following conditions: – i) a restructuring plan, which must be endorsed by the Commission, has to be prepared, and fully implemented, restoring the firm’s

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Author

Daniel Boeshertz
European Commission - DG COMP (Brussels)

Belgium 3 contributions 1926 visits

Quotation

Daniel Boeshertz, The EU Commission approves State guarantee granted by the Austrian government in the banking sector (BAWAG-PSK), 27 June 2006, e-Competitions State intervention, Art. N° 35316

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