Press Release: State aid: Commission approves Danish rescue aid for Fionia Bank

The European Commission approved, under EC Treaty state aid rules, rescue aid that the Danish authorities have granted to Fionia Bank. The aid is in the form of a credit facility of up to €685 million (DKK 5.1 billion) and a €134 million (DKK 1 billion) capital injection to bring the level of solvency up to a constant 11.5%. The measure constitutes an adequate means to remedy a serious disturbance in the Danish economy while avoiding undue distortions of competition and is therefore compatible with Article 87.3.b. of the EC Treaty, as explained in the Commission's guidance on state aid to banks during the crisis. In particular, the measures are limited in time and scope and contain sufficient safeguards to avoid abuses.