Public support for Denmark's FIH Erhvervsbank temporarily approved

Jun 29, 2012

The European Commission has temporarily approved public support for FIH Erhvervsbank, Denmark's fifth-largest bank. The package includes a DKK 2 billion (€269 million) impaired asset measure, a DKK 17.1 billion (€2.315 billion) asset relief measure, and a side agreement between FIH and the Danish Financial Stability Company for additional guarantees.

The measures are approved for six months, as DKK 42 billion (€5.7 billion) of state guaranteed bonds issued by FIH will expire within the next 12-18 months. The aid is to allow FIH to continue lending to SMEs.

The Commission has also opened a formal investigation into the restructuring plan to ensure that Denmark will be adequately remunerated.

Full content: EC Press Release

 

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