Brussels, 23/12/2008 (Agence Europe) - On Tuesday 23 December 2008, the European Commission endorsed changes in the details of the British state support system for banks, the original version of which was approved by the Commission on 13 October.
The amendments mainly concern the fee payable on guaranteed liabilities and the widening of the range of currencies in which the guaranteed instruments can be issued. The modifications will bring the UK scheme in line with those in other Member States. Competition Commissioner Neelie Kroes welcomed, "the excellent cooperation with the UK authorities” that has led to a quick and effective Commission decision.
Following the changes approved on Tuesday, sound banks do not need to provide a restructuring plan, but may instead provide a report that illustrates that they remain fundamentally sound and how they plan to repay the state capital. The Guarantee Scheme and other guarantee debt instruments will be issued in Japanese yen, Australian dollars, Canadian dollars and Swiss francs, as well as in sterling, US dollars or Euros, which are already eligible. Other amendments apply to the repayment rates and periods of debt guarantees. Further information is available at DG Competition's website under case number: N650/2008. (C.D./trans/fr/rh)