Press Release: State aid: European Commission clears extension of bank support measures in Portugal and Spain

The European Commission has extended until 31 December 2010 its authorisation under EU state aid rules of the Portuguese bank guarantee and bank recapitalisation schemes and of the Spanish recapitalisation measures in favour of the banking sector.

The extended Portuguese guarantee scheme requires the banks to pay higher premiums for the guarantees granted by the State. This is to encourage banks to finance themselves without state support and to limit distortions of competition. The Commission has already extended under the same conditions its authorisation of bank guarantee schemes in Sweden, Germany, Austria, Latvia, Ireland, Spain, Denmark, The Netherlands, Slovenia, Greece and Poland.