Press Release: State aid: Commission approves Spanish recapitalisation scheme for credit institutions

The European Commission has approved until 31 December 2012 a new Spanish scheme aimed at strengthening the capital basis of credit institutions under EU state aid rules. The scheme will provide state support to banks which need to cover short-term capital needs following the stress test currently being conducted under the Memorandum of Understanding on Financial Sector Policy Conditionality (MoU).

In addition, the scheme serves as a backstop facility for banks with urgent capital needs materialising before the stress test is completed. The Commission found the scheme to be in line with its rules on state support to banks during the crisis, because it is limited in time and scope and contains exit incentives.

• Primary Source

ESO: Background information: Spain wins restructuring of bank deal http://www.europeansources.info/record/spain-wins-restructuring-of-bank-deal/

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