INHALT

2014/885/EU: Commission Decision of 29 April 2014 on the State aid SA.34825 (2012/C), SA.34825 (2014/NN), SA.36006 (2013/NN), SA.34488 (2012/C) (ex 2012/NN), SA.31155 (2013/C) (2013/NN) (ex 2010/N) implemented by Greece for the Eurobank Group related to: Recapitalisation and Restructuring of Eurobank Ergasias S.A.; Restructuring aid to Proton bank through creation and capitalisation of Nea Proton and additional recapitalisation of New Proton Bank by the Hellenic Financial Stability Fund; Resolution of Hellenic Postbank through the creation of a bridge bank (notified under document C(2014) 2933) Text with EEA relevance

COMMISSION DECISION
of 29 April 2014
on the State aid SA.34825 (2012/C), SA.34825 (2014/NN), SA.36006 (2013/NN), SA.34488 (2012/C) (ex 2012/NN), SA.31155 (2013/C) (2013/NN) (ex 2010/N) implemented by Greece for the Eurobank Group related to: Recapitalisation and Restructuring of Eurobank Ergasias S.A.; Restructuring aid to Proton bank through creation and capitalisation of Nea Proton and additional recapitalisation of New Proton Bank by the Hellenic Financial Stability Fund; Resolution of Hellenic Postbank through the creation of a bridge bank
(notified under document C(2014) 2933)
(Only the English text is authentic)
(2014/885/EU)
1.
PROCEDURE
1.1. PROCEDURES RELATED TO THE EUROBANK GROUP(2) (‘THE BANK’(3))
1.2. PROCEDURE RELATED TO THE ACQUIRED BUSINESSES
1.2.1.
Procedure related to Nea Proton Bank
1.2.2.
Procedure related to New TT Bank
2.
DESCRIPTION
2.1. THE BANK AND ITS DIFFICULTIES
2.1.1.
General context of the Greek banking sector
2.1.2.
The economic activities of the Bank
2.2. THE BANK’S ACQUISITIONS OF GREEK BANKING ACTIVITIES
2.2.1.
Acquisition of Nea Proton Bank
2.2.2.
Acquisition of New TT Bank
2.3. AID MEASURES
2.3.1.
Aid measures granted to the Bank under the Greek Banks Support Scheme
2.3.1.1.
State liquidity support granted under the guarantee measure and the government bond loan measure (measure L1)
2.3.1.2.
State recapitalisation granted under the recapitalisation measure of the Greek Banks Support scheme (measure A)
2.3.2.
State-guaranteed ELA (measure L2)
2.3.3.
Aid measures granted to the Bank through the HFSF
2.3.3.1.
The first bridge recapitalisation (measure B1)
2.3.3.2.
The second bridge recapitalisation (measure B2)
2.3.3.3.
The commitment letter of 21 December 2012 (measure B3)
2.3.3.4.
The Spring 2013 recapitalisation (measure B4)
2.3.3.5.
The 2014 recapitalisation commitment (measure C)
2.3.4.
Aid measures to the acquired businesses
2.3.4.1.
Aid measures to Proton Bank and Nea Proton Bank
2.3.4.1.1.
Aid measures to Proton Bank
(i) State recapitalisation received by Proton Bank (measure Pr1)
(ii) State liquidity support received by Proton Bank (measures Pr2 and Pr3)
2.3.4.1.2.
Aid measures to Nea Proton Bank
(i) Coverage of Nea Proton Bank’s funding gap of EUR 1 121,6 million (measure NP1)
(ii) Capital injections by the HFSF into Nea Proton Bank in 2011 and 2012 (measure NP2)
(iii) Capital injection by the HFSF into Nea Proton Bank before the sale to Eurobank (measure NP3)
2.3.4.2.
Aid measures to New TT Bank
2.3.4.2.1.
Aid measure to T Bank
2.3.4.2.2.
Aid measure to TT Bank
2.3.4.2.3.
Aid measures to New TT Bank
(i) Coverage of the funding gap of New TT Bank of EUR 3 732,6 million (measure NTT1)
(ii) Capital injections by the HFSF into New TT Bank (measure NTT2)
2.4. THE RESTRUCTURING PLAN AND THE NEW BUSINESS MODEL
2.4.1.
Domestic operations
2.4.2.
International banking activities
2.4.3.
Non-banking activities: sale of insurance business and real estate activities
2.4.4.
Private capital raising and contribution by existing shareholders and subordinated creditors
2.5. COMMITMENTS OF THE GREEK AUTHORITIES
3.
GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURES
3.1. GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE REGARDING THE FIRST BRIDGE RECAPITALISATION
3.2. GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE REGARDING NEA PROTON BANK
3.3. GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE REGARDING NEW TT BANK
4.
COMMENTS FROM INTERESTED PARTIES ON THE FORMAL INVESTIGATION PROCEDURE REGARDING THE FIRST BRIDGE RECAPITALISATION
5.
COMMENTS FROM GREECE ON THE FORMAL INVESTIGATION PROCEDURES
5.1. COMMENTS FROM GREECE ON THE FORMAL INVESTIGATION PROCEDURE REGARDING THE FIRST BRIDGE RECAPITALISATION
5.1.1.
Comments prepared by the Bank of Greece
5.1.2.
Comments prepared by the HFSF
5.2. COMMENTS FROM GREECE ON THE FORMAL INVESTIGATION PROCEDURE REGARDING NEA PROTON BANK
5.2.1.
Comments prepared by the Bank of Greece
5.2.2.
Comments prepared by the HFSF
5.3. COMMENTS FROM GREECE ON THE FORMAL INVESTIGATION PROCEDURE REGARDING NEW TT BANK
6.
ASSESSMENT OF AID RELATED TO THE ACQUIRED BUSINESSES
6.1. ASSESSMENT OF AID RELATED TO NEA PROTON BANK
6.1.1.
Existence and the amount of aid
6.1.1.1.
Existence of aid in the measures granted under the Greek Banks Support Scheme (measures Pr1, Pr2 and Pr3)
6.1.1.2.
Existence of aid in the coverage of the funding gap of Nea Proton Bank (measure NP1)
6.1.1.3.
Existence of aid in the initial share capital injection by the HFSF and additional share capital injection by the HFSF in 2012 (measure NP2)
6.1.1.4.
Existence of aid in capital injection from the HFSF into Nea Proton Bank prior to its sale to the Bank (NP3)
6.1.1.5.
Conclusion on the existence and total amount of aid received
6.1.2.
Legal basis of the compatibility assessment
6.1.3.
Compatibility assessment of the aid measures under the 2008 Banking Communication and Recapitalisation Communication
6.1.3.1.
Compatibility of measures Pr1, Pr2 and Pr3 with the 2008 Banking Communication
6.1.3.2.
Compatibility of measures NP1 and NP2 with the 2008 Banking Communication and Recapitalisation Communication
6.1.3.3.
Compatibility of measure NP3 with the 2008 Banking Communication and Recapitalisation Communication
6.1.3.3.1.
Appropriateness
6.1.3.3.2.
Necessity
6.1.3.3.3.
Proportionality
6.1.3.3.4.
Conclusion on the compliance of measure NP3 with the 2008 Banking Communication and the Recapitalisation Communication.
6.1.4.
Compatibility of the aid measures with the Restructuring Communication
6.1.4.1.
Long-term viability of Nea Proton Bank’s activity through sale
6.1.4.2.
Own contribution and burden-sharing
6.1.4.3.
Measures to limit distortions of competition
6.1.4.4.
Conclusion on the compatibility with the Restructuring Communication
6.2. ASSESSMENT OF AID RELATED TO NEW TT BANK
6.2.1.
Existence and the amount of aid
6.2.1.1.
Existence of aid in the coverage of the funding gap of the transferred assets and liabilities of T Bank (measure T)
6.2.1.2.
Existence of aid in the recapitalisation granted under the recapitalisation measure to TT Bank (measure TT)
6.2.1.3.
Existence of aid in the financing of the funding gap of New TT Bank (measure NTT1)
6.2.1.4.
Existence of aid in the initial share capital injection (measure NTT2)
6.2.1.5.
Existence of aid to the Bank as the acquirer of New TT Bank
6.2.1.6.
Conclusion on the existence of aid
6.2.2.
Legal basis of the compatibility assessment
6.2.3.
Compatibility of the aid measures with the 2008 Banking Communication and the Recapitalisation Communication
6.2.3.1.
Compatibility of measure T with the 2008 Banking Communication and the Recapitalisation Communication
6.2.3.2.
Compatibility of measure TT with the 2008 Banking Communication
6.2.3.3.
Compatibility of measures NTT1 and NTT2 with the 2008 Banking Communication and the Recapitalisation Communication
6.2.4.
Compatibility of aid measures T, TT, NTT1 and NTT2 with the Restructuring Communication
6.2.4.1.
Lack of appropriate remuneration of the aid: to be taken into account in the assessment under the Restructuring Communication
6.2.4.2.
Long-term viability of New TT Bank’s activity through sale
6.2.4.3.
Own contribution and burden-sharing
6.2.4.4.
Measures to limit distortions of competition
6.2.4.5.
Conclusion on the compatibility of aid measures T, TT, NTT1 and NTT2 with the Restructuring Communication.
7.
ASSESSMENT OF AID GRANTED TO THE BANK
7.1. EXISTENCE AND THE AMOUNT OF AID
7.1.1.
Existence of aid in the measures granted under the Greek Banks Support Scheme
7.1.1.1.
State liquidity support granted under the guarantee and the government bond loan measures (measure L1)
7.1.1.2.
State recapitalisation granted under the Recapitalisation Scheme (measure A)
7.1.2.
Existence of aid in the State-guaranteed ELA (measure L2)
7.1.3.
Existence of aid in the measures granted through the HFSF
7.1.3.1.
First bridge recapitalisation (measure B1)
7.1.3.2.
Second bridge recapitalisation (measure B2)
7.1.3.3.
Commitment letter (measure B3)
7.1.3.4.
The Spring 2013 recapitalisation (measure B4)
7.1.3.5.
Conclusion on measures B1, B2, B3 and B4
7.1.3.6.
The 2014 recapitalisation commitment (measure C)
7.1.4.
Conclusion on the existence and total amount of aid received
7.2. LEGAL BASIS FOR THE COMPATIBILITY ASSESSMENT
7.2.1.
Legal basis of the compatibility assessment of the liquidity support to the Bank (measure L1)
7.2.2.
Legal basis of the compatibility assessment of the preference shares (measure A)
7.2.3.
Legal basis of the compatibility assessment of the State-guaranteed ELA (measure L2)
7.2.4.
Legal basis of the compatibility assessment of the HFSF recapitalisations (measures B1, B2, B3, and B4)
7.2.5.
Legal basis of the compatibility assessment of the 2014 recapitalisation commitment (measure C)
7.3. COMPLIANCE OF MEASURE L2 WITH THE 2008 BANKING COMMUNICATION, THE 2011 PROLONGATION COMMUNICATION AND THE 2013 BANKING COMMUNICATION
7.4. COMPLIANCE OF MEASURES B1, B2, B3 AND B4 WITH THE 2008 BANKING COMMUNICATION, THE RECAPITALISATION COMMUNICATION AND THE 2011 PROLONGATION COMMUNICATION
7.4.1.
Appropriateness of the measures
7.4.2.
Necessity — limitation of the aid to the minimum
7.4.3.
Proportionality — measures limiting negative spill-over effects
7.4.4.
Conclusion on the compliance of the HFSF recapitalisations with the 2008 Banking Communication, Recapitalisation Communication and the 2011 Prolongation Communication
7.5. COMPLIANCE WITH THE RESTRUCTURING COMMUNICATION OF THE PURCHASES OF NEW TT BANK AND NEA PROTON BANK BY THE BANK
7.5.1.
Compliance of the acquisition of New TT Bank with the Restructuring Communication
7.5.1.1.
Effect of the acquisition of New TT Bank on the long-term viability of the Bank
7.5.1.2.
Effect of the acquisition on the aid amount needed by the Bank
7.5.1.3.
Distortive effect of the acquisition on competition
7.5.1.4.
Conclusion on the acquisition of New TT Bank
7.5.2.
Compliance of the acquisition of Nea Proton Bank with the Restructuring Communication
7.5.2.1.
Effect of the acquisition of Nea Proton Bank on the long-term viability of the Bank
7.5.2.2.
Effect of the acquisition of Nea Proton Bank on the amount of aid needed by the Bank
7.5.2.3.
Distortive effect of the acquisition of Nea Proton Bank on competition
7.5.2.4.
Conclusion on the acquisition of Nea Proton Bank
7.6. COMPLIANCE OF MEASURES A, B1, B2, B3, B4 AND C WITH THE RESTRUCTURING COMMUNICATION AND OF MEASURE C WITH THE 2013 BANKING COMMUNICATION
7.6.1.
Sources of difficulties and consequences on the assessment under the Restructuring Communication
7.6.2.
Viability
7.6.2.1.
Greek banking activities
7.6.2.2.
Corporate governance
7.6.2.3.
International activities
7.6.2.4.
Conclusion on viability
7.6.3.
Own contribution and burden-sharing
7.6.3.1.
Assessment of the compliance of measures A, B1, B2, B3 and B4 with the Restructuring Communication
7.6.3.1.1.
Own contribution by the Bank: divestments and cost cutting
7.6.3.1.2.
Burden-sharing by historical shareholders and new capital raised on the market
7.6.3.1.3.
Burden-sharing by subordinated debt holders
7.6.3.2.
Assessment of the compliance of measure C with the 2013 Banking Communication
7.6.3.3.
Conclusion on own contribution and burden-sharing
7.6.4.
Measures to limit distortions of competition
7.7. MONITORING
8.
CONCLUSION
Article 1
Article 2
ANNEX
EUROBANK — COMMITMENTS BY THE HELLENIC REPUBLIC
CHAPTER I
DEFINITIONS
CHAPTER II
RESTRUCTURING COMMITMENTS
CHAPTER III
COMMITMENTS ON CORPORATE GOVERNANCE AND COMMERCIAL OPERATIONS — PROLONGATION AND AMENDMENTS
Section A
Setting up an efficient and adequate internal organisation
Section B
Commercial practices and risk monitoring
General principles
Specific provisions
Provisions applying to connected borrowers
Section C
Other restrictions
CHAPTER IV
MONITORING TRUSTEE
Appendix
MACROECONOMIC PROJECTIONS FOR GREEK DOMESTIC OPERATIONS