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10 December 2008

Commission approves Austrian support scheme for financial institutions


 The Austrian package consists of guarantee measures with a total budget capped at €75 billion and state guarantees with a total budget of €15 billion.

The Commission approved the Austrian package of measures aimed at stabilising the financial markets by providing guarantees, capital and loans to eligible credit and insurance institutions.

 

The Austrian package consists of guarantee measures with a total budget capped at €75 billion aimed at stabilising the interbank market. To this end a Clearingbank was created, which is guaranteed by the state. It also provides for additional measures, including state guarantees on the liability and asset side, loans and recapitalisations, with a total budget of €15 billion.

 

The major novel feature apart from the Clearingbank is a guarantee for the asset side of the balance sheet, thus protecting recipient banks from potential value adjustments of these assets, which must be remunerated properly.

 

Press release



© European Commission


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