Press Release: State aid: Commission approves Portuguese state guarantee for €450 million loan to Banco Privado Português

The European Commission approved, under EC Treaty state aid rules, a state guarantee underwriting a €450 million loan granted to Banco Privado Português by six Portuguese banks. The Commission found the temporary rescue measure to be in line with its Guidance Communication on state aid to overcome the financial crisis. In particular, the measure was necessary to remedy the severe liquidity problems of Banco Privado Português and to preserve confidence in the financial markets, and is limited to the minimum required to achieve this objective. The Commission therefore concluded that the measure can be authorised because it is an adequate means to remedy a serious disturbance of the Portuguese economy and as such is in line with Article 87.3.b of the EC Treaty.