Brussels, 12/12/2008 (Agence Europe) - On Friday 12 December, the European Commission approved the Slovenian scheme to assist credit institutions. The Slovenian measures particularly aim at stabilising financial markets by making state guarantees available for “eligible” institutions, allowing the latter to continue offering credit services to other players of the so-called “real” economy.
The Slovenian programme is in line with several others recently cleared by the Commission, including in so far as it suggests priority assistance should be given to “healthy” institutions that have had credit restrictions imposed on them due to the current economic situation. The spokesman for Competition Commissioner Neelie Kroes welcomed the conditions set out in the programme. These have been the “subject of extensive discussions” and provide for “non-discriminatory access … including to subsidiaries of foreign banks”, he said. The budget available for the scheme is capped at €12 billion. The state guarantee would cover, against remuneration, the issuance of new short and medium term non-subordinated debt with a maturity between 90 days and five years. Only solvent banks are allowed to enter the scheme, which is for non-subordinated debts only, i.e. those whose reimbursement is a priority compared to other debt obligations in the event of bankruptcy. The Commission's endorsement covers a period of six months, following which Slovenia should terminate the scheme or renotify its extension to the Commission. (C.D./transl.jl)