EC Statement: State aid - Commission approves German export credit scheme
( September 15, 2009, 09:45 GMT | Official Statement) -- Extract: The European Commission has authorised, under EC Treaty state aid rules, a scheme envisaged by Germany to limit the adverse impact of the current financial and economic crisis on the supply of export credit. Under the scheme, the German public credit institution Kreditanstalt für Wiederaufbau (KfW) would be allowed to purchase existing export loans from banks. These banks would have to use the cash received for granting new export loans to purchasers outside the European Union. The Commission found the draft measure to be in line with its October 2008 Communication on state support for financial institutions in the current financial crisis and authorised it for six months.The European Commission has authorised, under EC Treaty state aid rules, a scheme envisaged by Germany to limit the adverse impact of the current financial and economic crisis on the supply of export credit. Under the scheme, the German public credit institution Kreditanstalt für Wiederaufbau (KfW) would be allowed to purchase existing export loans from banks. These banks would have to use the cash received for granting new export loans to purchasers outside the European Union. The Commission found the draft measure to be in line with its October 2008 Communication on state support for financial institutions in the current financial crisis (see IP/08/1495) and authorised it for six months. In particular, the scheme is appropriate and necessary to address a major market disruption and it contains sufficient safeguards to minimise potential distortions of competition. It is also limited in time, foresees market-orientated pricing and applies only to the financing of exports outside the Single Market....
Prepare for tomorrow’s regulatory change, today
MLex identifies risk to business wherever it emerges, with specialist reporters across the globe providing exclusive news and deep-dive analysis on the proposals, probes, enforcement actions and rulings that matter to your organization and clients, now and in the longer term.
Know what others in the room don’t, with features including:
Daily newsletters for Antitrust, M&A, Trade, Data Privacy & Security, Technology, AI and more
Custom alerts on specific filters including geographies, industries, topics and companies to suit your practice needs
Predictive analysis from expert journalists across North America, the UK and Europe, Latin America and Asia-Pacific
Curated case files bringing together news, analysis and source documents in a single timeline