Press Release: State aid: Commission approves Dutch guarantee scheme for financial institutions

The European Commission approved, under EC Treaty state aid rules, a Dutch guarantee scheme intended to restore and facilitate the financing of Dutch financial institutions, which is hampered by the drying up of the interbank lending market. This in turn endangers the provision of loans to companies and households. The Commission found the scheme to be in line with its Guidance Communication on state aid to overcome the current financial crisis. The scheme constitutes an adequate means to remedy a serious disturbance in the Dutch economy while avoiding undue distortions of competition and is therefore compatible with Article 87.3.b. of the EC Treaty. In particular, the scheme provides for non discriminatory access, is limited in time and scope, requires an adequate guarantee fee and provides safeguards to minimise distortions of competition.