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MEMO/08/619

Brussels, 14th October 2008

State aid: Overview of national rescue measures and deposit guarantee schemes

(See table attached in annex)

This information is compiled from a range of sources and is provided for information only. The European Commission cannot confirm the completeness or accuracy of the information.

Country
Type of commitment (political/legal)
Material scope
Eligibility
Time





Austria
deposit guarantee scheme
Government approved a detailed deposit guarantee plan (8/10/08);
Measure to be passed by Parliament on 28/10/08.
Unlimited deposit guarantee for private customers.

Entry into force (retroactively) on 1/10/08.
Austria
other
Government decided to guarantee deposits (8/10/08)
Measures for protecting financial stability:
- create liquidity clearing point; possible state guarantee for clearing point to borrow on markets;
- create legal basis for state guarantees for support measures for individual banks;
- create legal basis for state to intervene in case needed with capital.


Belgium
deposit guarantee scheme

Increase of bank deposit guarantee of up to EUR100,000


Belgium
other
Announcement by Belgian PM (9/10/08)
State offers to guarantee all new bank loans of "systemic" Belgian banks, i.e. inter-bank deposits, bonds and institutional investments.
(Guarantees on same terms as Dexia guarantee: obligations expiring before 30.10.2011 and issued until 31.10.09 renewable for a further year. Banks will have to pay a fee for the guarantee "reflecting the advantage the entities get").

Until 31/10/2009.
Belgium/France/Luxembourg
Dexia, Individual rescue aid
Notified between 30/09/2008 and 13/10/2008
Recapitalisation and guarantee
Dexia

Belgium/Netherlands/Luxembourg
Fortis, Individual rescue aid
Notified between 30/09/2008 and 10/10/2008
Recapitalisation and asset sale
Fortis

Bulgaria
Government decision on 9/10/08. Amendment to the existing law will be proposed.
Increase of bank deposit guarantee to EUR50,000.


Cyprus
deposit guarantee scheme + other
Government announcement;
Legislation will be prepared.
Increase of bank deposit guarantee of up to EUR100,000.

Government has EUR2bn in reserve to bail out the banking sector if need be.


Czech Republic
deposit guarantee scheme
Government decision on 9/10/08.
Amendment to the law to be proposed.
Increase of deposit guarantee to EUR 50,000.
Customers of bankrupt banks will be compensated for 100% of their savings (instead of so far 90%).


Denmark
Guarantee scheme
for banks in Denmark
Scheme notified to the Commission on 08/10/2008.
Bill passed on 10 October (Financial Stability Act).

Commission decision on 10/10/2008 (Scheme is aid compatible under 87(3)(b)) IP/08/1483
Scheme comprises two components:
- a State Guarantee that covers depositors and 'creditors' of all scheme member banks (for the amounts that are not covered by the Danish Deposit Guarantee Scheme)
- A winding up company / vehicle that will be set up, owned and capitalised by the State to be available for any scheme member banks that fail.
All solvent banks in DK are eligible to participate (including foreign branches of Danish banks and Danish branches of foreign banks).
10/10/08 to 30/09/2010 (prolongation conditional to approval by the Commission).
Denmark
deposit guarantee scheme
Law adopted on 10/10/08
The law gives unlimited state guarantee for all domestic and foreign claims by depositors (see above).

05/10/08 to 30/09/10
Denmark
Roskilde Bank, Individual rescue aid
Measure notified to Commission on 08/10/2008, approved on 10/10/2008 (IP/08/1222)
Liquidity facility and guarantee
Danish Roskilde Bank
11/07/2008 to 11/01/2009
Finland
deposit guarantee scheme

Increase of deposit guarantee from EUR25,000 to EUR50,000 (08/10/08)

Until end 2009.
France
other
Announcement by PM (13/10/08)
Amendment to finance law to be proposed.
Plan to stabilise the financial sector including:
- Liquidity and lending guarantees of up to EUR320bn
- Bank recapitalisation of up to EUR40bn
In principle solvent banks.

France
Individual rescue aid to Dexia à see Belgium




Germany
deposit guarantee scheme
Political declaration (no legislation planned)
Unlimited guarantee on all retail deposits in German banks

Not mentioned.
Germany
Rescue package
Decision to be taken by law on 17/10/08.
Rescue package of up to EUR500bn:
- the Government will provide up to EUR400bn in liquidity or lending guarantees;
- the Government will provide up to EUR80bn in state funds for bank recapitalisation.
In principle solvent companies.
31 December 2009
Germany
HRE group, Individual rescue aid
Measure communicated to Commission on 30/09/2008, approved on 02/10/2008 (IP/08/1453)
Loan guarantees
Hypo Real Estate Holding AG
October 2008 to April 2009
Germany
BayernLB, Individual rescue aid
Notified on 29/08/2008
Risk shield
BayernLB

Germany
WestLB, Individual restructuring aid
Commission in-depth investigation opened on 01/10/2008 (IP/08/1435)
Restructuring
WestLB

Germany
SachsenLB, Individual restructuring aid
Commission approved on 04/06//2008 (IP/08/849)
Restructuring
Sachsen LB

Germany
IKB, Individual restructuring aid
Commission in –depth investigation opened on 27/02/2008 (IP/08/314)
Restructuring
IKB

Greece
deposit guarantee scheme
Political commitment, proposal submitted to the Parliament (9/10/08)
Increase of deposit guarantee for accounts of individuals to EUR100,000.
Political commitment to cover also deposits of legal persons.

3 years
Greece
Other
Political announcement.
Plan to strengthen the Greek banking system (possibly based on the UK model). To be confirmed.


Hungary
deposit guarantee scheme
Announcement (8/10/08); legislative action will follow.
Increase of deposit guarantee from HUF6m to HUF13m.
Political declaration by Prime Minister for full guarantee of deposits.


Netherlands
deposit guarantee scheme

Increase of bank deposit guarantee of up to EUR100,000.


Netherland
Other
Announcement at press conference on 9/10/08.
Dutch government set up a fund for the financial sector (EUR20bn available immediately; fund could be extended if need be). Funds for liquidity provision and capital reinforcement will be directly available for fundamentally sound and viable banks that run into problem.
Not clear yet how the capital will be provided.
Fundamentally sound and viable financial undertakings of all sizes. Banks and insurers established in the Netherlands, groups to which those banks and insurers belong, as well as financial subsidiaries established in the Netherlands of foreign financial enterprises or groups.
1 year as of 10 October 2008.

Italy
deposit guarantee scheme
+other
Government decree approved on 8/10/08.







Government Decree approved on 13/10/08.
Two instruments to protect systemic stability:
- Government will be able to intervene through recapitalisation or purchase of assets if a private bank is in trouble. It was decided to create a special EUR20bn fund as an emergency credit line.
- second grade guarantee fund for all bank deposits up to EUR103,000.


The Decree provides for State guarantees for banks' debt and the possibility to exchange government bonds for bank obligations.

Entry into force upon publication in the Gazzetta Ufficiale.
Ireland
Guarantee scheme
Government Decision (30/09/08) & Bill (Credit Institutions Financial Support Act N° 18 of 2008), approved by Commission on 13/10/2008 (IP/08/1497)
Guarantee scheme for deposits (retail, commercial, institutional and interbank), bonds and debts.
Initially six main Irish banks –
Press release of 09/10/08 announcing eligibility of foreign banks' subsidiaries.
2 years (+ review clause)
Lithuania
deposit guarantee scheme
Government is currently seeking Parliamentary approval for the proposal (emergency bill).
Increase of deposit guarantee from EUR22,000 to EUR100,000.

1 year (until October 2009)
Luxembourg
Individual rescue aid to Dexia à see Belgium




Luxembourg
Individual rescue aid to Fortis à see Belgium




Netherlands
Individual rescue aid to Fortis à see Belgium




Poland




Portugal
deposit guarantee scheme
Political declaration by the Minister of Finance (6.10.2008)
Bank deposit guarantee increased from EUR25,000 to EUR100,000.
Portuguese nationals who have deposits in Portuguese banks.

Portugal
other
Announcement by the government on 12/10/08.
Guarantee scheme for the financing of credit institutions up to a maximum value of EUR20bn, with a view to improving conditions of access to liquidity in the financial markets.
Applies to credit institutions with registered office in Portugal.

Romania
deposit guarantee scheme

Increase of bank deposit guarantee of up to 50,000 Euro (now the guarantee is up to 20,000).


Slovak Republic
deposit guarantee scheme
Government decision (8/10/08). To be approved by Parliament in the coming days.
Unlimited guarantee of deposits of physical persons and some categories of legal persons.


Slovenia
deposit guarantee scheme
Announcement in press conference (8/10/08);
banking act to be changed.
Introduction of an unlimited guarantee on deposits (so far EUR 22,000).
Applies to banks operating on Slovenian territory.
Temporary measure (until the end of the financial crisis)
Spain
deposit guarantee scheme
Announcement by the Prime Minister (7/10/08)
Increase of the cap of the deposit guarantee from EUR20,000 to EUR100,000.


Spain
other
Law decree adopted on 10/10/08.

Notified to the Commission on 10/10/08.
Creation of a fund of up to EUR50bn to buy Spanish top rated assets from banks and other financial institutions.


Sweden
deposit guarantee scheme
Proposal to Parliament
(will apply as from 6 October 2008 if the bill passes)
This concerns changes to the Swedish implementation of the deposit guarantee directive 94/19/EC

Measure A) Bank deposit guarantee (all types of accounts of private and legal persons) to be increased from SEK250 000 to SEK500 000
(EUR25.000 to EUR50.000 EUR).

Measure B) For Swedish branches of foreign banks (EEA or third country) for which deposits are covered by a guarantee scheme in the banks home country, the government may, if the home country guarantee fails to perform AND this failure is deemed to disturb the Swedish financial system, step in and compensate the depositors on the terms of the home country scheme.
Measure A: Applies to banks and branches in accordance with Directive 94/19/EC.

Measure B) Concerns branches of non-Swedish bank (EEA or third country)
Not mentioned.
UK
deposit guarantee scheme
Political statement at this stage.
UK is to increase its cap on the amount it will guarantee to savers from 35,000 to 50,000 pounds, starting on 7/10/08.


UK
other
Announcement by the UK government. Approved by Commission on 13/10/2008 (IP/08/1496)
Rescue package for the banking system worth £500bn.
Extra capital will be made available to eight of UK's largest banks and building societies in exchange for preference shares or equity.

Other section of the scheme: short-term liquidity of £200bn will be made available from the Bank of England and £250bn in loan guarantees will be made available at commercial rates to encourage banks to lend to each other.
Eight of UK's largest banks are covered, but other banks and building societies can also apply.

UK
Bradford & Bingley Individual rescue aid
Notified to Commission on 30/09/2008, approved on 01/10/2008 (IP/08/1437)
Liquidity facilities, guarantees
Bradford & Bingley
29/09/2008 – 29/03/2009
UK
Northern Rock, Individual restructuring aid
Restructuring plan notified to Commission on 17/03/2008, in-depth investigation openend on 02/04/2008 (IP/08/489)
Restructuring
Northern Rock


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