27/05/2019 (Agence Europe) – On Monday 27 May, the European Commission approved the extension of an Italian measure to support the banking sector in the form of guarantee scheme for non-performing loans. This allows certain Italian banks to solicit and obtain public guarantees on the lower-risk senior notes issued by private securitisation vehicles. On the other hand, the riskiest brackets are not covered by a state guarantee. Initially approved in February 2016 (see EUROPE 11487/21) and last extended in August last year (see EUROPE 12086/11), the Commission has always considered that this measure does not constitute State aid, in that these guarantees are remunerated at market terms. This analysis is confirmed today and the Commission's authorisation to extend is valid until 27 May 2021. (LT)