Press Release: State aid: Commission approves Belgian state guarantee for Fortis Bank

The European Commission approved, under EC Treaty state aid rules, the state guarantee mechanism intended to facilitate the financing of Fortis Bank. The Commission found the aid to be in line with its Guidance Communication on state aid to overcome the current financial crisis. The aid was necessary to ensure the viability of Fortis Bank and thereby avoid a serious disturbance in the Belgian economy. The guarantee plan was limited in time and scope to the minimum necessary to restore the financing, requires an adequate guarantee fee and provides safeguards to minimise distortions of competition. It was therefore compatible with Article 87.3.b. of the EC Treaty. The decision does not cover the measures implemented in favour of Fortis Bank from 29 September to 6 October 2008 (capital injection and sale to BNP Paribas), which are assessed separately.