Press Release: State aid: European Commission authorises support package for Lithuanian financial institutions

The European Commission has approved under EU state aid rules a Lithuanian package intended to stabilise the markets as a response to the global financial crisis.

The package will provide eligible credit institutions with new capital, guarantees on newly issued short and medium term debt, and relieve them of troubled assets under strict conditions. The Commission found the measures to be in line with its guidance Communications on state aid to overcome the financial crisis.

In particular, the package ensures non-discriminatory access, is limited in time and scope, provides for a market-oriented remuneration and foresees adequate safeguards to minimise potential distortions of competition.

The Commission therefore concluded that the scheme is an adequate means to remedy a serious disturbance in the Lithuanian economy and is as such compatible with Article 107.3.b of the EU Treaty.