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General Court overturns EC, finds ING’s cheaper loan financing constitutes state aid that is compatible with the common market

By  |  March 4, 2012

The General Court has ruled on Friday, March 2 that ING’s cheaper loan financing constitutes state aid that is compatible with the common market. ING had received 10 billion euros in its bailout package from the Netherlands, the terms of which required ING to reduce its balance sheet, split operations, and sell assets as the terms of the state aid. In 2009, ING and the Netherlands agreed to amended repayment terms that amounted to 2 billion euros saved. The European Commission had found the amount to be illegal state aid, a decision that the General Court overturned.

As a result of the General Court’s ruling, ING may need to sell fewer assets. The ruling is also likely to have effects on other banks’ challenges to restructuring demands currently pending before the European Commission, such as those raised by Dexia, BayernLB, and Hypo Group Alpe Adria.

Full content: InfoCuria

 

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