Press Release: State aid: Commission approves ING restructuring plan and illiquid asset back-up facility

The European Commission has approved under EC Treaty state aid rules the restructuring plan of Dutch-based financial institution ING, including an illiquid asset back-up facility provided by the Dutch State. The approval of the facility became possible after an additional agreement between the Dutch State and ING. On the basis of the notified restructuring plan, ING will pay a significant proportion of the restructuring costs, ING's long term commercial viability will be restored, and the aid will not lead to undue distortions of competition. The restructuring plan foresees that ING will reduce the risk profile and complexity of its operations and will sell its insurance activities over time. ING will also carve out, according to a detailed trustee-supervised timetable, a business unit (Westland Utrecht Hypotheekbank (WUH) / Interadvies), to step up competition in the Dutch retail banking market. Based on the proposed plan, the Commission has concluded that the measures are compatible with EU rules on state aid to remedy a serious disturbance in a Member State's economy (Article 87(3)(b) of the EC Treaty).

• Primary Source

European Commission: MEMO/09/507: State aid: Commission decisions on KBC, ING and Lloyds – frequently asked questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/507&format=HTML&aged=0&language=EN&guiLanguage=en

European Commission: SPEECH/09/541: Commission outlines conditions for state aid to KBC, ING and Lloyds http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/09/541&format=HTML&aged=0&language=EN&guiLanguage=en

---