The EU Commission finds that a State guarantee on a bond to be issued by a Greek bank to improve its liquidity is aid compatible with the internal market (Attica Bank)

Support for Illiquid but Solvent Banks* State aid may be granted to solvent banks which face temporary liquidity difficulties. Introduction State aid rules have their own logic and are applied independently of other policy areas. However, in certain situations, the Commission enforces State aid rules in conjunction with linked provisions in other fields. A typical example is taxes levied on agricultural products to raise revenue to fund related activities such as marketing of agricultural products or research in particular animal or plant diseases. Another example is the granting of aid in the form of liquidity support to solvent banks or aid to facilitate the resolution of failing banks. The case which is reviewed in this article shows how the Commission ensures compliance with two