The European Commission authorized on Thursday 16 January the prolongation until 31 May 2020 of the Greek guarantee scheme for credit institutions under EU State aid rules (see EUROPE 12154/29). The liquidity situation of Greek banks is gradually improving, but difficulties remain, the Commission analyses.
In this context, the Commission found that the prolongation of the guarantee scheme is in line with EU State aid rules, in particular because the prolonged measure is targeted, proportionate and limited in time and scope.
The Commission authorizes guarantee schemes for bank liabilities for successive periods of six months in order to be able to monitor developments and adjust conditions accordingly. The scheme is available to banks with no capital shortfall. The Greek guarantee scheme was initially approved in November 2008. The continuation of this scheme has been prolonged several times, most recently in June 2019. (Original version in French by Lionel Changeur)