Brussels, 21/01/2011 (Agence Europe) - On 20 January, the Commission authorised the extension, until 30 June 2011, of a Lithuanian and two Portuguese bank support schemes.
In the case of Lithuania, the scheme consists of state guarantees, asset relief measures and recapitalisations in the form of subordinated loans. It was initially approved on 5 August 2010 (see EUROPE 10197). With regard to Portugal, the Commission has allowed extension of the recapitalisation scheme, initially approved on 20 May 2009 (see EUROPE 9906) and extended twice (on 17 March 2010 and on 23 July 2010) and the Portuguese guarantee scheme, which was initially approved on 29 October 2008 (see EUROPE 9773) and extended on 22 February 2010.
The Commission states that the schemes are in line with the guidance on state aid to financial institutions during the crisis. In particular, they are limited in time and scope and require the presentation of a restructuring plan in the event of granting recapitalisation measures, in line with the stricter requirements introduced in December 2010 to stimulate a gradual return to market conditions. (F.G./transl.rt)