Brussels, 27/07/2015 (Agence Europe) - On Friday 24 July, the European Commission opened an in-depth investigation to determine whether the aid granted by the Portuguese state to Banco Internacional do Funchal S.A (Banif) is compatible with the European rules on state aid.
The European institution is currently assessing Banif's restructuring plan, which the Portuguese authorities presented with a view to confirmation of the state aid of €1.1 billion (acquisition of 700 million euros' worth of shares and 400 million euros' worth of hybrid securities), temporarily granted to the Portuguese bank in January 2013 (see EUROPE 10768). At this point, it “has concerns whether the measures meet the requirements” under the European rules, it states in a press release. The Commission reiterates that the rules on state aid to the banking sector in times of crisis aim to re-establish the long-term viability of a restructured bank and to guarantee that the best possible use is made of the tax-payers' money to achieve this result, by means of an appropriate contribution from the owners of the said bank.
Banif, which is present mainly in the Azores and Madeira, is currently the eighth-largest commercial bank in Portugal measured by book asset value. At the end of 2014, it held assets of €13.1 billion.
The Commission will now investigate further to see if its concerns are justified, taking into account any views submitted by stakeholders. (Mathieu Bion)