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Commission extends Hungary liquidity and recapitalization scheme until year-end

The European Commission said it approved under EU state aid rules an extension of a Hungarian liquidity scheme for credit institutions and of a Hungarian bank support scheme until December 31, 2012.

The Commission initially approved the liquidity scheme -- launched by the Hungarian government in March 2009 -- in January 2010. The bank support scheme was initially cleared on February 12, 2009. The Commission has authorized their extension several times.

The Commission found the extension of the schemes to be in line with its guidance on state aid to banks during the 2008 crisis. In particular, the prolonged measures are proportionate, well targeted and limited in time and scope, it said. The Commission concluded that the measures represent an appropriate means of remedying a serious disturbance in the Hungarian economy and are as such compatible with the Treaty on the Functioning of the European Union (TFEU).