The European Commission has authorised, under EU State aid rules, the prolongation of a guarantee scheme for credit institutions in Portugal until February 9, 2019.
The credit institutions can access the scheme under certain conditions should the need arise. The Commission found the extension of the measure to be in line with its 2013 Banking Communication, according to which the Commission can authorise schemes providing for liquidity measures for banks, which do not have a capital shortfall.
The scheme was initially approved in October 2008 and extended on several occasions since, most recently in November 2017. The Commission approved the prolongation of the scheme because the measure is well targeted, proportionate and limited in time and scope.
In line with the 2013 Banking Communication, the Commission is authorising guarantee schemes on banks’ liabilities for periods of six months. Each prolongation is based on a review of the developments in financial markets and the scheme’s effectiveness.