30/01/2014 (Agence Europe) - Prolongation of Danish bank liquidation scheme. On 30 January, the European Commission authorised the extension until 30 June 2014 of a Danish scheme for the winding-up of banks, including a compensation scheme, and two other mechanisms facilitating the sale of failing banks. The measures aim at enabling market-based solutions for ailing banks, be it via an orderly winding-down or by a full or partial sale, through a competitive process. The Commission says they are an appropriate and proportionate response to remedy a serious disturbance in the Danish economy and therefore comply with Commission guidance on state aid to banks during the crisis. Initially approved in September 2010, the liquidation scheme was amended in August 2011 to introduce a compensation system, and the two mechanisms to facilitate the sale of struggling banks were introduced in December 2011. (FG/transl.fl)