Revised EU bank rules may benefit private bidders
By Ailish O’Hora and Brendan Keenan, Thursday December 11 2008
independent.ie/business/euro … 70485.html
The controversial private equity scheme to invest in Irish banks may not need an EU green light, the Irish Independent has learned.
However, State refinancing of the banks, which many analysts prefer, would have to go to Brussels for approval.
The European Commission’s revised approach to bank refinancing, including concessions for private/state co-investment in light of the recent deterioration in economic conditions, is provided in a new document which outlines the body’s stance on state aid for the refinancing of the banking sector.
The document, seen by the Irish Independent, provides for an automatic clearing of private investment deals where the private investors take more than 30pc of an institution, and any State investment is on the same terms. The arrangement must also not significantly alter the incentives for the private stakeholder.
