Brussels, 29/06/2010 (Agence Europe) - On Tuesday 29 June, the European Commission authorised Spanish aid for the restructuring of Caja Castilla-La Mancha. The Commission considers that the restructuring plan adequately addresses the problems that led to the bail-out of the bank in 2009 whilst avoiding undue distortions of competition. The Commission's investigation found that the orderly break-up of Caja Castilla-La Mancha, followed by the sale of the banking business to a competitor (Banco Liberta, a subsidiary of the Grupo Cajastur) ensured that the sold business became viable without continued state support. The Commission further concluded that the distortion of competition caused by the significant state support was limited by the in-depth restructuring, the sale of the viable part of the business through an auction, the liquidation of the non-banking assets, and the continuation of Caja Castilla-La Mancha only as a charitable foundation. The Commission noted, too that the bank also had a limited market presence in the Spanish market, only around 1% in mid 2009. The aid provided to Caja Castilla-La Mancha (state guarantee, capital injection, liquidity contribution, etc) amounted to some €7 billion. (O.L./transl.rt)