Press Release: State aid: Commission approves restructuring plan of Lloyds Banking Group

The European Commission has approved under EC Treaty state aid rules the restructuring plan of Lloyds Banking Group. Under a package of financial support measures approved by the Commission on 13 October 2008, the Lloyds Banking Group received a state recapitalisation of £17 billion (some €19 billion). The approval of this recapitalisation was conditional upon the submission of a restructuring plan. This plan was submitted to the Commission on 16 July 2009 and contained additional state aid measures. Having assessed the past and new aid on the basis of the notified plan, and in view of amendments agreed by the UK authorities, the Commission is satisfied that it is in line with its restructuring communication and as such 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. In particular, the measures foresee that Lloyds will pay a significant proportion of the restructuring costs, ensure a sustainable future for Lloyds without continued state support and that there will not be undue distortions of competition.

• 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

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