Brussels, 09/07/2009 (Agence Europe) - On Thursday 9 July, the European Commission approved a loan of €320 million granted by Luxembourg for the restructuring of Kaupthing Bank Luxembourg S.A. As the primary purpose of the loan was to compensate depositors with the Belgian branch of Kaupthing Bank Luxembourg SA, the Belgian state decided to help finance it to the tune of €160 million. Under the restructuring plan, deposits with the Belgian branch of Kaupthing Luxembourg were sold to Crédit Agricole Belgique/Keytrade Bank. The private bank part based in Luxembourg is to be taken over by UK investment fund Blackfish Capital. All these activities were sold to the highest bidder in a call for tender procedure. The bank's other assets will be wound up in a hive-off vehicle and the revenue used to compensate creditors and repay the state aid. The Commission has concluded that the €320 million is an appropriate means of contributing towards the stability of the financial system, while avoiding any distortion of competition. (O.L./transl.rh)