13/02/2014 (Agence Europe) - SGR Valencia restructuring aid given go-ahead. On Thursday 13 February, the European Commission found restructuring aid granted by Spain to SGR Valencia, a non-profit mutual guarantee company in Valencia, to be in line with EU state aid rules. SGR Valencia had received a capital injection of €60 million and a €200 million state guarantee. The Commission concluded that SGR Valencia's restructuring plan ensures the company's viability and provides for a sufficient own contribution to the restructuring costs. Moreover, adequate measures for addressing the competition distortions created by the state support are in place. In particular, SGR Valencia will significantly reduce its size over the course of the restructuring period and will repay existing partners not more than the value of their shares as of 31 December 2013. Furthermore, if SGR's capital level surpasses a certain threshold, all the funds above this level will be transferred into a locked reserve account with the aim of reducing the amount of state aid needed. SGR Valencia will retreat from risky market segments and its corporate governance will be reviewed root and branch. (MB/transl.fl)