Press Release: State aid: Commission opens in-depth investigation into Portugal’s state guarantee for Banco Privado Português

The European Commission opened, under EC Treaty state aid rules, an in-depth investigation into the state guarantee on a €450 million loan granted to Banco Privado Português by six Portuguese banks. The Commission initially approved the measure on 13 March 2009 for a period of six months, subject to the submission of a restructuring plan outlining the future of the bank without state aid. Such a plan has not yet been submitted to the Commission. On 5 June 2009 Portugal prolonged the guarantee for a further six months without prior notification to the Commission. The Commission had doubts that the state guarantee was still in line with its Guidance Communication on state aid to overcome the financial crisis in relation to both the duration and the pricing of the measure. The opening of a formal investigation procedure does not prejudge whether the measures concerned are in line with the EU state aid rules. It is a necessary step to ensure legal certainty for stakeholders and provides an opportunity to third parties to submit comments.