ANNOUNCED AS TEMPORARYNo
On 4 August 2014, the European Commission approved state aid for the insolvent Portuguese bank Banco Espirito Santo.
As part of the decision, all funds from Banco Espirito Santo were transfered into a "bridge bank" - Novo Banco - which shall be fully owned by the Portuguese Resolution Fund. Furthermore, the Portuguese government was allowed to provide 4.9 billion EUR in capitalisation for the newly established bank, under the condition that the bank would be sold within 2 years. Until then, the bank's bonds would be covered by state guarantees.
In the letter to Portugal, the Commission "finds that the Measure distorts competition as it allows the Bridge Bank to obtain the necessary capital to avoid insolvency. The Commission finds that the Measure is also likely to affect trade between Member States as the financial services market is by its nature global, BES competes on an international level, and some of the its competitors in Portugal are subsidiaries or branches of foreign banks." (par.61-62, letter from the EC to Portugal, 03.08.2014)
On 21 December 2015, the EC approved a prolongation of the set deadline. The new exact date was kept secret "in order to protect the effectiveness of the sale process".
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.
The list of affected trading partners is based on Europe's largest financial centres (according to the Global Financial Centres. Index).
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