Brussels, 08/12/2005 (Agence Europe) - The European Commission decided on 7 December to initiate formal investigation proceedings in respect of aid granted by SNCB to finance the restructuring of its subsidiary Inter Ferry Boats (IFB). Created in 1999, Inter Ferry Boats (IFB) is a limited company under Belgian law 89.03% of whose capital is held by SNCB, mainly engaged in the rail transport sector and support activities for that sector, such as the handling and storage of goods, the operation of terminals linked to the rail network and the organisation of freight transport. In the 2001 and 2002 financial years, IFB recorded significant losses. A long-term structural reorganisation of the undertaking was clearly necessary. To this end, IFB and SNCB concluded a framework agreement on 7 April 2003 which provides for granting of an extension for payment of debts of €63 million; granting of a recoverable advance of €5 million; granting of a credit facility of €15 million; conversion into capital of debts of €63 million and the loan of €15 million; and an increase in additional capital of €5 million. The Commission doubts IFB is eligible for restructuring aid because it might have received part of this aid less than three years after its formation, Belgium might not have done all it can to limit the adverse effects of the aid, and IFB does not appear to have contributed to its own restructuring.