ANNOUNCEMENT 29 Jun 2012

In June 2012, the Portuguese government granted recapitalisation aid to Banco Comercial Português. The measure was approved by the European Commission in August 2013.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.34724. Restructuring of Banco Comercial Português (BCP) Group – Portugal :
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_34724

Original publication:
http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2014:460:SOM:EN:HTML

European Commission decision. SA.34724
http://ec.europa.eu/competition/state_aid/cases/247497/247497_1600000_491_2.pdf

European Commission. Press release of 30 August 2013.
http://europa.eu/rapid/pressReleasesAction.do?reference=MEX/13/0902

Inception date: 29 Jun 2012 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 29 June 2012, the Portuguese government granted a EUR 3 billion (approx. USD 4 billion) recapitalisation measure to Banco Comercial Português (BCP). The aid was issued under the restructuring scheme to support Banco Comercial Português (BCP) in the context of the sovereign debt crisis and the deteriorating macro-economic environment in Greece, one of its principal markets. The measure was approved by the European Commission on 30 August 2013.

Under the measure, the Portuguese government provided capital injection under the Portuguese Recapitalisation Scheme approved in May 2012. According to the Commission's Decision, BCP is a financial group that offers a wide range of financial products and services, both in Portugal and abroad, with strong participation in the Greek market. 

In this context, the European Commission recalled the evaluation of the Portuguese Recapitalisation Scheme (SA. 34055) which Decision stated that the scheme should "be regarded as distorting competition and affecting trade between Member States". 

Regardless, the Commission has decided not to raise objections to the aid on the grounds that "the restructuring aid in favour of the BCP Group is compatible with the internal market for reasons of financial stability on the basis of Article 107(3)(b) of the Treaty [TFEU]". 

The state aid is notified under the following objective: Remedy for a serious disturbance in the economy.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
N/A
Inception date: 29 Jun 2012 | Removal date: open ended

Loan guarantee

On 29 June 2012, the Portuguese government provided three loan guarantees valued at EUR 4.8 billion (approx. USD 6.3 billion) to Banco Comercial Português (BCP). The aid was issued under the restructuring scheme to support Banco Comercial Português (BCP) in the context of the sovereign debt crisis and the deteriorating macro-economic environment in Greece, one of its principal markets. The measure was approved by the European Commission on 30 August 2013.

In particular, the three Portuguese guarantees were issued under (i) the Portuguese Guarantee Scheme; (ii) the Portuguese guarantee scheme on EIB lending; and (iii) pure EIB funding. According to the Commission's Decision, BCP is a financial group that offers a wide range of financial products and services, both in Portugal and abroad, with strong participation in the Greek market. 

In this context, the European Commission noted that the "guarantees could distort competition and affect trade between the Member States".

Regardless, the Commission has decided not to raise objections to the aid on the grounds that "the restructuring aid in favour of the BCP Group is compatible with the internal market for reasons of financial stability on the basis of Article 107(3)(b) of the Treaty [TFEU]". 

The state aid is notified under the following objective: Remedy for a serious disturbance in the economy.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

 
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