Press Release: State aid: Commission authorises extension of bank support schemes in Ireland, Spain, Denmark and Hungary

The European Commission has extended, under EU state aid rules, guarantee schemes for banks in Ireland, Spain and Denmark and a liquidity scheme in Hungary. The extended schemes feature higher premiums to be paid by the banks for the guarantees and liquidity granted by the State. This is to encourage banks to finance themselves without state support and to limit distortions of competition. The majority of the current anti-crisis schemes for the financial sector expire on 30 June 2010. In agreement with EU Finance ministers, the extension of schemes is subject to higher fees charged by governments and, for banks that continue to rely heavily on State aid for their financing, to a viability review. The Commission has already extended under these conditions bank guarantee schemes in Sweden, Germany, Austria and Latvia. The extensions are for six months, until the end of 2010.

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