IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 22 Dec 2011 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

On 21 May 2009, the 'National Bank of Greece' (NBG) received a first EUR 350 million recapitalisation under the recapitalization scheme (see related measure).NBG is the largest banking group in Greece with total assets of EUR 115 billion.
 
NBG is the market leader in deposits, mortage lending and insurance. The bank has eight subsidiary banks in: Turkey, Bulgaria, Romania,Macedonia, Serbia, Cyprus, South Africa and Malta (par. 4)
 
To address capital shortfalls, NBG needed a second recapitalization. On 13 December 2011, Greece notified a plan that foresees a recapitalization of EUR 1 billion. (par. 13, letter from the EC to Greece, Brussels 22.12.2011) The state does not provide the amount in cash but subscribes to preference shares. After a five year period, the preferential shares will be transfered into common shares and the state intervention will quasi expire.
 
The overall scheme (related measure) provides more information on potential trade distortions:'The measure distorts competition as it strengthens the position of beneficiaries by providing them with the financial resources to continue to comply with the capital requirements. As the beneficiaries are active in other European financial markets and as financial institutions from other Member States operate in Greece, the recapitalisations under the Fund are also likely to affect trade between Member States." (par. 48 of the letter from the EC to Greece- Brussels, 3.9.2010 C(2010) 6077 final).
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

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