Press Release: State aid: Commission approves restructuring plans of Spanish banks BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia

The European Commission has concluded that the restructuring plans of the four Spanish banks BFA/Bankia, NCG Banco, Catalunya Banc and Banco de Valencia are in line with EU state aid rules.

The in-depth restructuring undergone by BFA/Bankia, NCG Banco, Catalunya Banc will allow them to become viable in the long-term without continued state support. Moreover, the banks and their stakeholders adequately contribute to the costs of restructuring.

Finally, the plans foresee sufficient safeguards to limit the distortions of competition induced by the state support. Because its viability could not be restored on a standalone basis, Banco de Valencia will cease to exist as an independent entity and will be sold and integrated into CaixaBank. The restructuring plans were submitted for Commission approval as foreseen by the Memorandum of Understanding (MoU) agreed between Spain and the Eurogroup in July 2012.

The Commission's approval will allow the banks to receive aid from the European Stability Mechanism (ESM) in the context of the financial assistance programme to recapitalise the Spanish banking sector.

• Primary Source

ESO: Background Information: Spanish banks need over 50 billion euros to clean up balance sheets http://www.europeansources.info/record/spanish-banks-need-over-50-billion-euros-to-clean-up-balance-sheets/

European Commission: Memo/12/918: State aid: recapitalisation of Spanish banks - the Commission's role under EU State aid control http://europa.eu/rapid/press-release_MEMO-12-918_en.htm

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