Brussels, 27/07/2012 (Agence Europe) - On 27 July, the European Commission approved aid of €1.7 billion for newly created Greek Nea Proton Bank, which takes over from the former Proton bank. The Commission temporarily approved the measure until it reaches a final decision on the restructuring plan of Nea Proton Bank. At the same time, it has opened an in-depth investigation to assess whether the measure is in line with EU state aid rules.
On 9 October 2011, Proton Bank was resolved, its banking licence withdrawn and a series of assets and liabilities was transferred to a newly created entity, Nea Proton Bank. The opening balance sheet of Nea Proton Bank had more liabilities than assets. The gap was filled by a €1.122 billion contribution from the Hellenic Deposit and Investment Guarantee Fund (“HDIGF”) and the initial capital of Nea Proton Bank was provided by a €0.55 billion capital injection through the Hellenic Financial Stability Fund (“HFSF”). The Commission concluded that these two measures constituted state aid from which no profitable return can be expected and that they served to rescue the economic activities of the former Proton Bank, which would otherwise have disappeared. The Greek authorities therefore submitted a restructuring plan for Nea Proton Bank, based on a stand-alone business model but at this stage, the Commission has doubts whether the submitted restructuring plan will restore the viability of Nea Proton in the long term without continued state support, and whether this is the least costly solution. (FG/transl.fl)