Press Release: State aid: European Commission orders recovery of illegal state aid from Banco Privado Português

The European Commission has concluded that a State guarantee on a €450 million loan, initially granted in 2008, to Banco Privado Português (BPP) constituted illegal and incompatible State aid and ordered Portugal to recover the aid.

BPP had its licence revoked and entered liquidation proceedings in April. Portugal, which had to pay the loan, has filed the necessary claims to enforce its privileged and priority rights over the collateral it holds over BPP to recover the amount.

It has four months to inform the Commission of the steps it has taken to also try to recover the difference between the guarantee fee paid by BPP and what it should have paid.