EU to prolong Greek bank guarantee scheme
The European Commission has authorised the prolongation of the Greek guarantee scheme for credit institutions until 31 May 2018 under EU State aid rules.
The liquidity situation of the Greek banks is gradually improving. Therefore, the scheme is used significantly less. In this context, the Commission has found the prolongation of the guarantee scheme to be in line with the 2013 Banking Communication, which sets out the rules on State aid to banks during the crisis. This is because the prolonged measure is targeted, proportionate and limited in time and scope. In line with the 2013 Banking Communication, the Commission is authorising guarantee schemes on banks’ liabilities for successive periods of six months in order to be able to monitor developments and adjust conditions accordingly. The scheme is available for banks with no capital shortfall. The Greek guarantee scheme was initially approved in November 2008 and has been prolonged several times since then, the last time in July 2017.