A PYMNTS Company

Public support for Denmark’s FIH Erhvervsbank temporarily approved

 |  July 1, 2012

The European Commission has temporarily approved public support for FIH Erhvervsbank, Denmark’s fifth-largest bank. The package includes a DKK 2 billion (€269 million) impaired asset measure, a DKK 17.1 billion (€2.315 billion) asset relief measure, and a side agreement between FIH and the Danish Financial Stability Company for additional guarantees.

The measures are approved for six months, as DKK 42 billion (€5.7 billion) of state guaranteed bonds issued by FIH will expire within the next 12-18 months. The aid is to allow FIH to continue lending to SMEs.

The Commission has also opened a formal investigation into the restructuring plan to ensure that Denmark will be adequately remunerated.

Full content: EC Press Release


Related contentBanking Regulatory Reform: “Too Big to Fail” and What Still Needs to be Done


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