State Aid N 560 /2008 – GREECE Support Measures for the Credit Institutions in Greece

Greece

This decision involves a package of measures designed to bring stability to the Greek financial system.

– Specifies that the law is only applicable to credit institutions

– Credit institutions will obtain a tier 1 capital ratio above 8%, to be maintained for the duration of the scheme

– Stipulates behavioral conditions for participating institutions

– Stipulates criteria to determine amount to be distributed per financial institution

– Discusses special purpose securities to be lent to eligible credit institutions

– States the position of Greece in regards to the stipulations

– States that “only the borrowing of credit institutions can benefit from the guarantee scheme”

– States that purpose of bond loan scheme is to “to ensure that credit institutions have sufficient access to liquidity”