Press Release: State aid: Commission temporarily approves recapitalisation and asset relief by Belgium for KBC Group

The European Commission temporarily approved, under EC Treaty state aid rules, a package of measures that the Belgian authorities intend to grant to KBC Group N.V. First, the Commission authorised a recapitalisation amounting to €3.5 billion, which was in line with its Guidance Communications on state aid during the current financial crisis. Second, the Commission granted temporary clearance to the impaired asset relief, with final approval dependent on the result of an in-depth investigation. Whilst some of its provisions were in line with Commission guidance on the treatment of asset relief measures, other provisions (including valuation of the portfolio) required further in-depth analysis before a final decision can be taken. Both measures were approved for six months on condition that Belgium submits to the Commission an in-depth restructuring plan for KBC Group within 3 months.

• Primary Source

European Commission: Press Release: IP/09/1730: State aid: Commission approves asset relief and restructuring package for KBC http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1730&format=HTML&aged=0&language=EN&guiLanguage=en

NRC Handelsblad, 18.11.09: EU clears ING bank bailout http://www.nrc.nl/international/article2417239.ece/EU_clears_ING_bank_bailout

---