Brussels, 20/09/2012 (Agence Europe) - On Wednesday 19 September, the European Commission authorised the 2009 bailout by Austria of Austrian bank Österreichische Volksbanken AG (ÖVAG) in the form of capital injections totalling €1.25 million, liquidity guarantees totalling €3 billion and an asset guarantee of €100 million. The Commission says that the aid complies with EU state aid rules. After an investigation launched in 2011 (see EUROPE 10513), it concluded that the restructuring plan: 1) will make the bank viable in the long term without state aid. The bank will limit the scope of its activity to its core role of providing liquidity management services and intermediation in accessing capital markets to the Volksbanken. This will significantly reduce its balance sheet and the complexity of its business model. The activities which caused the bank's problems or which do not fall within this scope will be run down or divested. In particular, the bank will cease its real estate activities and parts of its corporate financing and investment portfolios; 2) will ensure a sufficient contribution from the banks and its shareholders towards the restructuring costs by reducing pay and costs; and 3) will reduce competitive distortions to a minimum. The bank has pledged to respect an acquisition ban and a price leadership ban for its online banking activities. (FG/transl.fl)