Brussels, 16/12/2008 (Agence Europe) - On Tuesday 16 December, the European Commission approved emergency liquidity assistance worth €225 million (SEK 2.4 billion) that the Swedish authorities granted to Carnegie Investment Bank AB. The Commission considers that the measures taken by Stockholm were essential to avoid the bank's collapse and that the measures set in place to avoid competition distortion were sufficient to ensure compliance with Community law. The state aid is subject to Carnegie refraining from any major expansion.
On 27 and 28 October 2008, the central bank of Sweden granted special liquidity assistance amounting to SEK 2.4 billion to the Carnegie Bank, which was experiencing urgent liquidity problems. On 10 November 2008, given the worsening of the bank's situation, central bank assistance was replaced by an emergency loan of an equivalent amount from the National Debt Office (Riksgälden). The National Debt Office subsequently took over all of Carnegie Bank's shares, which had been pledged as collateral. The Commission said that, without liquidity assistance from the central bank and without the emergency loan from the National Debt Office, Carnegie Bank was certain to collapse. Aid is approved as a temporary safeguard measure and Sweden has pledged to provide a liquidation plan or a restructuring plan for Carnegie Bank by 25 April 2009. The non-confidential version of the decision of authorisation from DG Competition will be made available on its website under case number NN 64/2008. (C.D./transl.jl)