State aid: Commission approves restructuring aid for Greek bank Alpha Bank

European Commission, Press release, Brussels, 9 July 2014:

The European Commission has found the restructuring plan of the Greek Alpha Bank, including the acquisition and integration of Emporiki Bank, to be in line with EU state aid rules. The measures already implemented and those envisaged in the future will enable the bank to return to viability, while limiting the distortions of competition brought about by the state funding. 

Commission Vice-President in charge of competition policy Joaquín Almunia said: "Alpha Bank's restructuring will make a significant contribution to reinforcing the viability of the Greek banking sector, to the benefit of the Greek economy."

Since 2008, Greece and the HFSF have granted repeated capital and liquidity support to Alpha Bank. The Commission opened an in-depth investigation in July 2012 (see IP/12/860). Greece has notified the restructuring plan of Alpha Bank in June 2014. 

Alpha Bank has already started to implement significant restructuring and rationalisation measures. The restructuring plan continues this effort. It provides for a further downsizing of international operations and a reinforcement of Greek operations, mainly through a rationalisation of operating expenses, a reinforcement of the net interest income, the strengthening of the balance sheet and a strict risk monitoring. These commitments will be monitored by a trustee. They will help turning the company into a solid and viable bank that can contribute significantly to the sustainable financing of the Greek economy..................http://europa.eu/rapid/press-release_IP-14-790_en.htm?locale=en

9/7/14