ANNOUNCEMENT 31 Mar 2011In March 2011, the government of Austria announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
the letter from EC to Austria - Brussels, 31.3.2011 C(2011) 2262 final - http://ec.europa.eu/eu_law/state_aids/comp-2011/sa32745-2011nn.pdf
Press release by the EC on the approval of the run-off plan, EXME 13/19.07:
On 31 March 2011 the final restructuring plan and the final commitments letter were formally notified to the European Commission. Kommunalkredit Austria AG (KA) was the 7th largest Austrian bank with a balance sheet of EUR 37.4 billion as of 31 December 2008. KA's business mainly consisted of (i) granting public and project finance loans, and (ii) investing and managing a sizeable portfolio of bonds and credit default swaps (CDS).
Five types of State aid measures have been granted to KA:
1) A capital injection
2) An impaired asset measure
3) State guarantees
4) State guarantee on Emergency liquidity assistance
5) A capital injection into KA Finanz.
The Comission gave the following opinion:
"Given that KA Neu is active cross-borders, in particular in Germany and CEE countries, in the financial sector, which is open to intense international competition, the Commission considers that any advantage from State resources would have the potential to affect intra-Community trade and to distort competition." (par. 43 of the letter from EC to Austria - Brussels, 31.3.2011 C(2011) 2262 final).
Update: EC approves run-off plan
On 19 July 2013, the Commission approved the run-off plan for KA. The bank shall stop any new lendings and cease to exist after the full-run down. In case its own means would not suffice during the procedure, the Austrian government may "provide contingent capital and liquidity support" (press release by the EC EXME 13/19.07).
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.