The EU Commission finds that recapitalisation of a Portuguese bank is not a State aid according to the market economy investor principle (Caixa Geral de Depósitos)

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Bank Recapitalisation that Conforms to the Market Economy Investor Principle* A public authority acts like a private investor when it injects capital in a stricken bank if there is a realistic prospect of sufficient return that compensates it for the risk it bears. Introduction Caixa Geral de Depósitos (CGD) is the largest bank in Portugal and is now fully owned by the State. In June 2012, Portugal notified to the Commission a number of recapitalisation measures in favour of CGD so that the latter could meet its solvency requirements. The recapitalisation measures consisted of injection of public money in the form of share capital amounting to €750 million and the subscription of convertible instruments (CoCos) issued by CGD amounting to €900 million. The Commission authorised the

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