Press Release: State aid: Commission authorises restructuring aid for Kaupthing Bank Luxembourg

The European Commission approved under EC Treaty state aid rules a loan of €320 million granted by Luxembourg for the restructuring of Kaupthing Bank Luxembourg S.A. The measure will contribute to the stability of the financial system while avoiding undue distortions of competition and was 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.

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