Press Release: State aid: Commission temporarily approves rescue recapitalisation of Cyprus Popular Bank

The European Commission has temporarily approved a rescue recapitalisation worth €1.8 billion that Cyprus granted to Cyprus Popular Bank for reasons of financial stability. The Commission found the measure to be in line with EU state aid rules because it is limited to the minimum necessary and provides safeguards to minimise distortions of competition.

The public support measure is approved for a period of six months. The Cypriot authorities committed to submit a restructuring plan for the bank within this period. The Commission will then take a final decision on the basis of the restructuring plan.

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