Brussels, 05/12/2007 (Agence Europe) - On 5 December, after eight days' examination, the Commission has authorised the UK authorities' package of measures to support the Northern Rock bank. The Commission concluded that this aid, notified on 26 November, is, as declared by the commissioner for competition's spokesman to the press, “in full conformity with the guidelines on rescue aid”. This aid was authorised by the Commission until 17 March 2008, a date on which it could be replaced by restructuring aid, which has to be provided with a preliminary notification and approval.
The Commission concluded that the Bank of England's granting of emergency liquidity assistance to Northern Rock on 14 September did not constitute state aid because it provided guarantees of sufficient collateral and interest. On the other had, the guarantee of deposits from the British Treasury on 17 September and the guarantees and measures to improve liquidity announced on 9 October are considered state aid. Loans and guarantees from the Bank of England to Northern Rock are estimated to be worth £25bn (€35bn). Mr Todd, however, did not say what the exact amount was and suggested that it was not necessary to provide these details for rescue aid if other conditions had been met, particularly if the aid is limited to a minimum needed for the survival of the company, and if the firm in question has not received state aid over the last ten years. The spokesperson welcomed the efficient cooperation of the British authorities, which had helped the Commission to rapidly reach a solution and limit the period of uncertainty on the financial markets. (C.D.)