Brussels, 01/08/2013 (Agence Europe) - On 1 August, the European Commission authorised the prolongation until 31 December 2013 of a guarantee scheme for banks in Portugal. This is the eighth six-month extension of a Portuguese guarantee scheme initially approved on 29 October 2008 with an initial budget of €20 billion to cover the issue of short- and medium-term loans from solvent banks in Portugal. The guarantees are granted for loans of up to three years, or exceptionally five years when duly justified by Portugal's central bank. This amounts to state aid, but the Commission says it is in line with its guidance on state aid to banks during the crisis. In particular, the extended measures are well-targeted, proportionate and limited in time and scope. The Commission therefore concluded that it represents an appropriate means of remedying a serious disturbance in the Portuguese economy and is as such compatible with EU state aid rules. (FG/transl.fl)