Press Release: State aid: Commission temporarily approves rescue aid for SNS REAAL

The European Commission temporarily approved under EU State aid rules a number of measures that the Dutch State intends to take in favour of SNS REAAL and its subsidiaries. SNS REAAL will be recapitalised by EUR 300m and will also receive a bridge loan of EUR 1.1b. At the same time, SNS REAAL's banking subsidiary – SNS Bank – will receive a recapitalisation of EUR 1.9b. The Commission's approval of the support measures is conditional on the presentation within six months of a restructuring plan from the date of the decision. The Commission will take a final position on the support granted on the basis of this restructuring plan.

The Commission found that the recapitalisation of SNS REAAL is necessary to preserve the stability of the Dutch financial system, in line with the Commission's guidelines on state aid for banks during the crisis. Indeed, the measures were required to allow SNS REAAL and its subsidiaries to comply with minimum capital requirements.

The intervention by the Dutch State leads to far-reaching and appropriate burden sharing by shareholders and hybrid capital holders. In fact, through the nationalisation all capital holders of SNS REAAL and SNS Bank – including hybrid capital holders – are fully participating in the losses of SNS REAAL. State aid will only be used to the extent that all existing capital is insufficient.