The European Commission on Monday announced that Greek state guarantees for non-systemic Athens-based lender Attica Bank, to support the bank’s access to liquidity, is in line with EU state aid rules.
The Commission said Attica’s intention to issue bonds that “can serve as collateral for Eurosystem financing operations.”
According to a Commission press release, “…these bonds will benefit from a state guarantee issued by the Greek state, in exchange for a fee paid by Attica Bank, and will have a nominal amount of €380 million. The Commission’s assessment showed that measure is targeted, proportionate and limited in time and scope. The Commission has therefore concluded that this liquidity support measure is in line with EU state aid rules, in particular its 2013 Banking Communication.”