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18 July 2011

EU to decide in autumn on new bank state aid rules


EU regulators will decide in the autumn whether to keep existing rules that specify how governments can aid troubled banks or adopt more stringent guidelines, the EU's antitrust chief said on Monday.

The current guidelines were issued by the European Commission in late 2008 allowing EU governments to bail out lenders in return for the lenders selling off assets and sharing the burden adequately with shareholders and some bondholders.

Earlier this year, the European Union executive said it planned to tighten the rules in January 2012 to wean the financial sector off state support.

The 2012 deadline may change following last week's stress tests which showed that some banks may need to raise additional capital, EU Competition Commissioner, Joaquin Almunia, said.

Press release


© Reuters


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