Press Release: State aid: Commission approves impaired asset management measures for banks in Hungary and Italy

The European Commission found in February 2016 Hungarian and Italian plans aimed at transferring non-performing loans off the balance sheets of Hungarian and Italian banks to be free of any state aid.

The Commission concluded that the pricing models used by the Hungarian asset management company ensured it has bought non-performing loans at market prices. The Commission also decided that under the state guarantee scheme chosen by the Italian authorities, the State is remunerated in line with market conditions for the risk it assumes by granting a guarantee on securitised non-performing loans.

The Commission took into account many aspects of the banking systems in both Hungary and Italy to assert its conclusions.

ESO: Background Information: Has Italy found a solution to the bad loans plaguing its banks? http://www.europeansources.info/record/has-italy-found-a-solution-to-the-bad-loans-plaguing-its-banks/

European Commission: Competition: State Aid: Cases http://ec.europa.eu/competition/state_aid/register/

---