State aid: Commission approves liquidity support scheme for Italian banks
The European Commission has authorised a liquidity scheme for Italian banks with the aim of supporting them in case of need. The liquidity support scheme will allow the Italian State to grant guarantees on newly issued liabilities and on Emergency Liquidity Assistance (ELA) from the central bank, up to a total nominal amount of €19 billion. Only viable Italian banks, as defined by the competent supervisor, with temporary liquidity issues will have access to the measure. The Commission has found that the guarantee scheme is in line with EU State aid rules. Namely, the Commission found that the aid is appropriate, necessary and proportional, based on the criteria set out in the 2013 Banking Communication. The remuneration for the guarantee to be paid to the Italian State is also in line with the 2011 Prolongation Communication. The measure is valid until 20 May 2021. The non-confidential version of the decision will be made available under the case number SA.57515 in the State aid register on the Commission’s competition website, once any confidentiality issues have been resolved.
