EC Approves Prolongation of Greek Bank Guarantee Scheme
EC has authorized the prolongation of the Greek guarantee scheme for credit institutions until November 30, 2020 under the EU State aid rules. The liquidity situation of the Greek banks is gradually improving, but challenges still remain in view of the COVID outbreak. In this context, EC found the prolongation of the guarantee scheme to be in line with EU State aid rules (that is, the 2013 Banking Communication), in particular because the prolonged measure is targeted, proportionate, and limited in time and scope. EC is authorizing guarantee schemes on banks' liabilities for successive periods of six months to be able to monitor developments and adjust conditions accordingly. The scheme is available for banks with no capital shortfall. The Greek guarantee scheme was initially approved in November 2008 and the scheme has been prolonged several times since then.
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Keywords: Europe, EU, Greece, Banking, Loan Guarantee, State Aid Rules, Regulatory Capital, Basel, COVID-19, Credit Risk, EC
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