Commission approves prolongation of UK support to banking sector

15 April 2009

The Commission approved the prolongation of the Credit Guarantee and Recapitalisation Schemes, which form part of the UK's support measures to the banking industry during the current financial crisis.

The Commission approved the prolongation of the Credit Guarantee and Recapitalisation Schemes, which form part of the UK's support measures to the banking industry during the current financial crisis.

 

The UK notified an extension of the schemes until 13 October 2009 because the severe stress in the global and UK financial markets that required the original Credit Guarantee and Recapitalisation schemes continue to exist.

 

The UK considered that the original limit on guaranteed issue of £250 billion remained appropriate. The amount set aside for recapitalisation remained £50 billion.

 

The eligible beneficiaries remained fundamentally sound banks, with eligible liabilities of above £500 million. A capital injection into a bank that has already accessed the recapitalisation scheme, however, will be subject to individual notification and approval.

 

Press release

 

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