ANNOUNCED AS TEMPORARYYes
On 10 February 2016, the European Commission approved the Italian securitisation scheme.
The scheme is meant to guarantee and later remove non-performing loans ("NPLs") off the balance sheets of Italian banks. It will be active for 18 months since the EC decision.
According to the EC, "Given that the Scheme is designed to address banks with portfolios of NPLs, it is by its nature selective. In light of the characteristics of the financial services markets in the Union which feature high level of exchanges and trade, the Scheme is capable of affecting trade between Member States. If it were to provide an advantage to participating banks that they could not obtain on the market, the Scheme would be capable of distorting competition."
On 6 September 2017, upon approval from the European Commission, the scheme was extended for a period of 12 months, i.e. until 5 September 2018. The Italian authorities informed the European Commission that the estimated budget remains at EUR 5 billion (approx. USD 5.6 billion).
On 31 August 2018, the European Commission approved a second prolongation of the scheme. It extends the scheme for a further 6 months, i.e. until 5 March 2019.
On 27 May 2019, the European Commission approved a third prolongation of the scheme. It extends the scheme for an additional period of 24 months, i.e. until 26 May 2021.
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.
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