ANNOUNCEMENT 04 Feb 2011In February 2011, the government of Denmark announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
the letter from the EC to Denmark - Brussels, 6.6.2011 C(2011) 3912 final - http://ec.europa.eu/eu_law/state_aids/comp-2011/sa32634-2011nn-en.pdf
Amagerbanken Aktieselskab ('Amagerbanken') was established in 1903 as 'A/S Kastrup bank', and later changed its name to Amagerbanken Aktieselskab in 1906. The bank's headquarter is located on the island of Amager.
Amagerbanken had by 4 February 2011 approximately 114 000 customers, of which approx. 10 000 were corporate customers. The bank was mainly involved in retail banking and corporate banking. Amagerbanken filed for bankruptcy and was declared bankrupt on 7 February 2011.
The measures to wind down Amagerbanken consist of three elements:
- A conditional transfer agreement (takeover sum paid by the FSC).
- A liquidity facility agreement for the New Bank.
- A subordinated loan, which will be made available for the New Bank (EUR 67 million).
The Commission gave the following assessment:
" The support measures allow the New Bank to get financing in a situation where it would have been unable to find adequate funding on the market, especially in view of the present financial and economic crisis situation. The New Bank thereby gains an economic advantage in comparison to its competitors in Denmark and other Member States that do not benefit from public support, as far as the New Bank continues to operate in the market. In addition, the proposed measures would not have been provided by a market economy investor expecting a reasonable return on his investment. The measures must therefore be regarded as providing an advantage to the New Bank. Moreover, the advantage is selective since it only benefits one bank. Given that the New Bank will be active - albeit in a limited way - in the financial sector, which is open to intense international competition, any advantage from State resources to the New Bank would have the potential to affect intra-Union trade and to distort competition." (par. 41-42 of the letter from the EC to Denmark - Brussels, 6.6.2011 C(2011) 3912 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.