Brussels, 16/03/2009 (Agence Europe) - On Friday 13 March, the European Commission approved a state guarantee underwriting a €450 million loan granted to Banco Privado Português by six Portuguese banks. The Commission found the temporary rescue measure to be in line with its guidance communication on state aid to overcome the financial crisis. In particular, it found that it was “necessary to remedy the severe liquidity problems of Banco Privado Português and to preserve confidence in the financial markets, and is limited to the minimum required to achieve this objective”. The Commission has therefore concluded that the measure can be authorised because it is an adequate means to remedy a serious disturbance of the Portuguese economy and as such is in line with the relevant provisions of the EC Treaty.
On 5 December 2008, Portugal issued a guarantee, assisted by collaterals, on a €450 million loan granted by six Portuguese banks to Banco Privado Português. Although the measure was initially notified on 5 December, complete information was not provided for the Commission until 20 February 2009. The loan has a duration of six months and can only be used by Banco Privado Português to face its liabilities as registered in the balance sheet on 24 November 2008. The aid is approved as a temporary rescue measure and Portugal has committed to provide a restructuring plan for Banco Privado Português within six months of the state intervention. (O.L./transl.jl)