A PYMNTS Company

Billions of euros for Banco CAM’s bailout constitute permissible state aid

By  |  May 31, 2012

The European Commission has approved the restructuring aid that Spain granted to Banco CAM. In July 2011, the Bank of Spain placed the beleaguered Banco CAM under the control of the Fondo de Reestructuración Ordenada Bancaria (FROB), which provided a €2.8 billion capital injection and a €3 billion liquidity line. Banco Sabadell then agreed to buy Banco CAM’s banking business in December 2011, following an open tender. As part of the sale, the Spanish Deposit Guarantee Fund and FROB granted three additional measures: (1) a guarantee for ten years on losses, estimated to be between €7.2 and €8.2 billion; (2) a second capital injection of €2.4 billion; (3) a contingent grant of up to €0.7 billion.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Commission determined that the aid was necessary to allow for Banco CAM to be sold to Banco Sabadell. After the sale of the banking business, CAM will continue to operate only as a special charitable foundation.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Full content: EC Press Release

     

    Related content: Competition Policy, Bailouts, and the Economic Crisis

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.