BRUSSELS Feb 22 EU competition regulators gave
temporary approval to a rescue plan for SNS Reaal of the
Netherlands, saying the recapitalisation of the banking and
insurance group was necessary for the stability of the Dutch
The European Commission, which acts as state aid regulator
in the 27-member European Union, said in a statement on Friday
it was approving the state-backed rescue for six months, during
which time a restructuring plan will have to be drawn up.
"The Commission found that the recapitalisation of SNS Reaal
is necessary to preserve the stability of the Dutch financial
system, in line with the Commission's guidelines on state aid
for banks during the crisis," it said.
"Indeed, the measures were required to allow SNS Reaal and
its subsidiaries to comply with minimum capital requirements."
It said it was approving for now 300 million euros ($397
million) in recapitalisation for SNS Reaal, which will also
receive a bridging loan of 1.1 billion euros. And it also gave
temporary approval for 1.9 billion euros recapitalisation for
the SNS Bank subsidiary.
The Commission's state aid regulators examine sizeable
amounts of aid or funding provided by EU governments, to ensure
it does not distort competition by giving aided companies an
($1 = 0.7563 euros)
(Reporting by Rex Merrifield)