Press Release: State aid: Commission approves Danish liquidation aid for Roskilde Bank

The European Commission authorised, under EC Treaty rules on state aid, a package of measures to liquidate Roskilde Bank in Denmark. In August 2008, when it became clear that the rescue of the bank would fail, the Danish National Bank and the Danish association of private banks (DPB) took over, through a newly created entity, all assets and liabilities of Roskilde Bank, with a view to preparing an orderly winding-up. In the context of the liquidation, the new entity was provided with capital and continued to benefit from the liquidity facility granted as a rescue measure. Furthermore, the Danish authorities agreed to provide a guarantee to the Danish National Bank for any losses it may incur in relation to this transaction. The new entity will only exist as a bank for the time needed to complete the sale of the branches, which already took place on 7 October, and the redemption of all senior creditors of the bank. The Commission found the liquidation to be in line with its Guidance Communication on state aid to overcome the financial crisis, because it was an appropriate and proportionate measure to address a serious disturbance of the Danish economy, while keeping the potential distortions of competition to the minimum. The liquidation measures are therefore compatible with Article 87.3.b. of the EC Treaty.