Brussels, 20/04/2015 (Agence Europe) - On Friday 17 April, the European Commission found that the aid granted to the small Greek bank Panellinia is in line with the European rules on state aid.
The small retail bank Panellinia, which represents 0.3% of the Greek banking market, was placed in a resolution process by the Bank of Greece as it failed to cover a capital shortfall identified in the 2013 stress test of the Greek banking sector. Under the resolution plan, selected activities of the small Greek bank will be transferred to Piraeus Bank, in compliance with the restructuring plan of Piraeus itself (see EUROPE 11127).
“This will ensure that Panellinia Bank's transferred activities return to long-term viability within the new entity, while limiting the distortion of competition created by the state aid granted”, the Commission states in a press release. It goes on to add that the shareholders of Panellinia had also been approached for contributions in order to keep the amount of state aid required to the absolute minimum. (Mathieu Bion)