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The Profitability of an Investment Must be Determined Ex Ante Main points Internal transfer of capital which is not used to fund new economic activities is not State aid. Injection of fresh capital to satisfy solvency and liquidity requirements still has to comply with State aid rules. A private investor always has the option of not injecting new capital and may opt instead to close down the business. A private investor always carries out an ex ante assessment of the profitability of a prospective investment. A private investor requires a return that exceeds the available risk-free rate and covers the extra risk from investment in a specific company.
In this article I review Commission Decision 2014/274 concerning the Belgian export-credit insurance Ducroire/Delcredere. In