Brussels, 04/02/2009 (Agence Europe) - The European Commission has approved a package of measures aimed at supporting the financing of the real economy in Denmark. In a press release published on Tuesday 3 February, the Commission said it was satisfied with the measures that complied with its Guidance Communications, particularly their “time and scope”, the “market oriented remuneration” and the fact that there are “sufficient safeguards to avoid abuses”. The new measures include a recapitalisation scheme and amendments to the existing guarantee scheme for banks, which was approved by the Commission on 10 October 2008. The recapitalisation scheme enables the state to subscribe hybrid capital qualifying as tier 1 capital. Capital endowment will be up to a level of 12% of tier 1 capital. The total budget for the measure will be around €13.5 billion. The Commission concluded that the adequacy of the recapitalisation would be ensured by a remuneration that varies according to the risk profile of the beneficiary and in the range of approximately 9 to 12%. Moreover, restrictions in the dividend policy, in particular a ban on dividends until 2010, as well as limitations on management remunerations and behavioural commitments to ensure the flow of funds to the real economy, ensure that potential distortions of competition are minimised. The scheme aims at supporting only "fundamentally sound" institutions. If the Commission concludes that a beneficiary institution can not be considered as "fundamentally sound", a restructuring plan will have to be provided. (C.D./transl.rh)