By KUNA,
Brussels : The European Commission (EC) announced here Thursday that it has approved rescue packages for Portugal and Sweden to stabilize financial markets.
The EU’s executive body said in a statement that it found the schemes were in line with EU state aid rule to overcome the financial crisis.
In particular, the guarantee is limited in time and scope, is available on a non-discriminatory basis, and beneficiaries will pay a market oriented premium, it noted.
On October 15, the Portuguese authorities presented the EC with a guarantee scheme with a budget of 20 billion euro aimed at facilitating credit institutions’ access to financing in the context of the current financial crisis.
The Swedish authorities on October 27 presented another package of measures, aimed at restoring investor confidence in the financial markets and at stimulating inter-bank lending. The total amount of debt to be covered is capped at about 150 billion euro.
“This decision shows that when member states follow the Commission’s guidance on overcoming the financial crisis, they can obtain rapid approval,” commented EU Competition Commissioner Neelie Kroes.