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State aid: EU Commission approves prolongation of Greek bank guarantee scheme

The European Commission has authorised the prolongation of the Greek guarantee scheme for credit institutions until 30 November 2020 under EU State aid rules.

The liquidity situation of the Greek banks is gradually improving, but challenges still remain, also in view of the coronavirus outbreak.

In this context, the Commission has found that the prolongation of the guarantee scheme is in line with EU State aid rules, i.e. the 2013 Banking Communication, in particular because the prolonged measure is targeted, proportionate and limited in time and scope.

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.

The authorisation of the scheme was prolonged several times, the last time in January 2020.

More information will be available on the Commission’s competition website, in the public case register under the case number SA.57262.

Arianna Podesta – Giulia Astuti –