Brussels, 30/05/2012 (Agence Europe) - On Wednesday 30 May, the European Commission authorised the restructuring aid granted by Spain to Banco CAM in the context of the sale of its banking activities to Banco Sabadell, judging it in line with EU state aid rules.
The disappearance of Banco CAM from the market as an independent entity, the sale of its banking business to Banco Sabadell and the deep restructuring foreseen should ensure long-term viability. These factors also limit the distortion of competition caused by the significant amount of aid compared to the size of the banking business, which had a total balance sheet of €70 billion in December 2011. The aid provided consisted of a guarantee for ten years on losses of between €7.2 and €8.2 billion of state aid; a capital injection of €2.4 billion, on top of the €2.8 billion rescue recapitalisation already received by Banco CAM from FROB; a contingent grant of up to €0.7 billion, which would be triggered only if certain conditions were met. Before the sale can become effective, Banco CAM will have to give up Treasury provided rescue support of €3 billion, which it received from the Spanish bank restructuring fund FROB. (FG/transl.fl)