Press Release: State aid: Commission approves additional aid up to €3 billion for the resolution of Portuguese bank Banif and asset sale to Banco Santander Totta

The European Commission approved on the 21 December 2015 the Portuguese plans to provide about €2.25 billion of state aid to cover the funding gap in the resolution of Portuguese bank Banco Internacional do Funchal S.A. (Banif) as in line with EU state aid rules. Another aid measure amouting to €422 million covered the transfer of impaired assets to an asset management vehicle.

The Commission also approved an additional buffer in the form of a state guarantee to cater for potential recent changes of values in the part sold to Banco Santander Totta, bringing the total potential aid measures up to €3 billion.

• Primary Source

ESO: Background information: State aid: Commission opens in-depth investigation into restructuring of Portuguese bank Banif http://www.europeansources.info/record/press-release-state-aid-commission-opens-in-depth-investigation-into-restructuring-of-portuguese-bank-banif/

EurActiv, 19.01.16: Lisbon allegedly blows €1 billion in bad liquidation deal http://www.euractiv.com/sections/euro-finance/lisbon-allegedly-blows-eu1-billion-bad-liquidation-deal-321069

The Wall Street Journal, 21.12.15: Portugal’s Failed Lender Banif Snapped Up by Santander http://www.wsj.com/articles/santander-to-buy-assets-of-portugals-banif-1450662038

Bloomberg, 23.12.15: Portugal Approves Amended Budget After Banif Sale to Santander http://www.bloomberg.com/news/articles/2015-12-23/portugal-approves-amended-budget-after-banif-sale-to-santander

The New York Times, 21.12.15: Portugal to Rescue Banco Internacional do Funchal http://www.nytimes.com/2015/12/22/business/dealbook/banco-internacional-do-funchal-banif-santander.html

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