Brussels, 31/07/2008 (Agence Europe) - On Thursday 31 July 2008, the European Commission authorised a package of measures to support Roskilde Bank in Denmark. The Danish National Bank has granted Roskilde Bank a liquidity facility, which was guaranteed partly by the private financial sector and partly by the Danish state. The Commission concluded that the private guarantee and the part of the liquidity facility that it covers do not constitute state aid and the remaining part of the liquidity facility, as well as the state guarantee, are compatible with EU state aid rules.
After closely examining the package notified by Denmark on 21 July, the Commission concluded that the part of the liquidity facility granted by the Danish National Bank as of 11 July 2008, which was guaranteed by the private financial sector, did not constitute state aid. Neither does the private guarantee involve state aid. The Commission found, however, that the other part of the liquidity facility guaranteed by the Danish state is state aid, but the Danish authorities pledged to respect EU rules and gave a commitment to submit in six months a restructuring or a liquidation plan or proof that the loan has been reimbursed in full and/or the state guarantee has been terminated. The Commission concluded that this means the measures meet EU state aid guidelines for the rescuing and restructuring of struggling companies.
Roskilde Bank, based in the town of Roskilde, is the eighth largest bank in Denmark, with a balance sheet total of DKK 42.9 billion as of 31 March 2008 (€5.75 billion). A substantial proportion of the bank's loan portfolio is related to the real estate market, which made the bank particularly vulnerable to recent turbulence on the market. (C.D. /transl fl)