On Friday 9 April, the European Commission decided to validate the 18-month extension of the October 2019 Greek scheme to support the reduction of non-performing loans of the country’s banks, on the grounds that the scheme does not constitute State Aid.
The asset protection scheme (known as ‘Hercules’) provides for the Greek State to be remunerated at market conditions for the risk it will bear in providing a guarantee on securitised non-performing loans.
The asset protection scheme...