Commission temporarily approves recapitalisation and asset relief for KBC
02 July 2009
The Commission temporarily approved the package of measures that the Belgian authorities intend to grant to KBC Group N.V.
The Flemish Region announced its intention to inject €3.5 billion of capital into KBC in two tranches of €2 billion and €1.5 billion. On 14 May 2009, KBC announced that it had reached an agreement with the Belgian authorities on an asset relief measure. Both measures were formally notified to the Commission on 18 June 2009.
As KBC has received three significant aid measures since the beginning of the crisis, it must undergo an in-depth restructuring. Belgium already submitted a plan to the Commission, in line with its obligation under previous aid measures, but Belgium now has three more months to provide a fully substantiated and up-dated, plan addressing the distortions of competition resulting from this measure.
© European Commission
