EC approves 2009 support measures for Hungarian bank FHB

History

The European Commission said Wednesday it has approved under EU state aid rules a 2009 recapitalization of HUF 30 billion (about €100 million) and a loan under the Hungarian liquidity scheme of approximately HUF 120 billion (approximately €400 million) for the Hungarian bank FHB.

After an in-depth investigation, the Commission concluded that the measures were in line with its guidance on state support for banks during the crisis because the revised restructuring plan will restore the bank's viability while ensuring that the distortion of competition created by the aid is kept to the minimum.

Taking into account the limited importance of FHB in the retail and commercial markets in Hungary and the fact that the bank repaid the State capital less than one year after the capital injection, the Commission found that the distortions of competition remain limited.

Moreover, the remuneration paid to the State is in line with the criteria set in the Hungarian recapitalization and guarantee scheme that the Commission authorized in February 2009.

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