Commission Decision (EU) 2015/455 of 23 July 2014 on the State aid SA.34826 (2012... (32015D0455)
Commission Decision (EU) 2015/455 of 23 July 2014 on the State aid SA.34826 (2012/C), SA.36005 (2013/NN) implemented by Greece for Piraeus Bank Group relating to the recapitalisation and restructuring of Piraeus Bank SA (notified under document C(2014) 5217) Text with EEA relevance
- COMMISSION DECISION (EU) 2015/455
- of 23 July 2014
- on the State aid SA.34826 (2012/C), SA.36005 (2013/NN) implemented by Greece for Piraeus Bank Group relating to the recapitalisation and restructuring of Piraeus Bank SA
- (notified under document C(2014) 5217)
- (Only the English text is authentic)
- (Text with EEA relevance)
- 1.
- PROCEDURE
- 1.1. PROCEDURE RELATED TO PIRAEUS BANK
- 1.2. PROCEDURE RELATED TO THE ACQUIRED BUSINESSES
- 1.2.1.
- Procedure related to ATE
- 1.2.2.
- Procedure related to the Greek operations of the Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank (‘the three Cypriot Banks’)
- 2.
- DESCRIPTION
- 2.1. THE BANK AND ITS DIFFICULTIES
- 2.1.1.
- General context of the Greek banking sector
- 2.1.2.
- The beneficiary
- 2.2. THE BANK’S ACQUISITIONS OF GREEK BANKING ACTIVITIES
- 2.2.1.
- Acquisition of ATE
- 2.2.2.
- Acquisition of Geniki
- 2.2.3.
- Acquisition of the Greek operations of the three Cypriot Banks
- 2.2.4.
- Acquisition of MBG
- 2.2.5.
- Overview of the combined effect of the acquisitions
- 2.3. AID MEASURES
- 2.3.1.
- Aid measures granted to the Bank under the Greek Banks Support Scheme (measures L1 & A)
- 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 (measure A)
- 2.3.2.
- State-guaranteed ELA (measure L2)
- 2.3.3.
- Aid measures granted to the Bank through the HFSF (measures B1, B2, B3 & B4)
- 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 20 December 2012 (measure B3)
- 2.3.3.4.
- HFSF’s participation in the Spring 2013 recapitalisation (measure B4) and partial repayment of measures B1 and B2
- 2.3.4.
- Aid measures to the acquired businesses (measure C)
- 2.3.4.1.
- Aid measures to ATE
- 2.3.4.2.
- Aid measures to the Greek operations of the three Cypriot Banks (measure C)
- 2.4. THE RESTRUCTURING PLAN
- 2.4.1.
- Domestic operations
- 2.4.2.
- International banking activities
- 2.4.3.
- 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 PROCEDURE ON THE FIRST BRIDGE RECAPITALISATION
- 4.
- COMMENTS FROM INTERESTED PARTIES ON THE FORMAL INVESTIGATION PROCEDURE ON THE FIRST BRIDGE RECAPITALISATION
- 4.1. COMMENTS FROM THE BANK
- 4.2. COMMENTS FROM ANOTHER GREEK BANK
- 5.
- COMMENTS FROM GREECE ON THE FORMAL INVESTIGATION PROCEDURE ON THE FIRST BRIDGE RECAPITALISATION
- 5.1. COMMENTS FROM THE BANK OF GREECE
- 5.2. COMMENTS FROM THE HFSF
- 6.
- ASSESSMENT OF AID RELATED TO THE ACQUISITION OF ATE AND THE GREEK OPERATIONS OF THE THREE CYPRIOT BANKS
- 6.1. ASSESSMENT OF AID RELATED TO ATE
- 6.2. ASSESSMENT OF AID RELATED TO THE GREEK OPERATIONS OF THE THREE CYPRIOT BANKS (MEASURE C)
- 6.2.1.
- Existence and the amount of aid
- 6.2.2.
- Legal basis for the compatibility assessment
- 6.2.3.
- Compliance of the aid measure C with the 2008 Banking Communication and the Recapitalisation Communication
- 6.2.3.1.
- Appropriateness
- 6.2.3.2.
- Necessity
- 6.2.3.3.
- Proportionality
- 6.2.3.4.
- Conclusion on the compliance with the 2008 Banking Communication and the Recapitalisation Communication
- 6.2.4.
- Compliance of the aid measure with the Restructuring Communication
- 6.2.4.1.
- Long-term viability of the Cypriot Transferred Activities through sale
- 6.2.4.2.
- Own contribution and burden-sharing
- 6.2.4.3.
- Measures to limit distortions of competition
- 6.2.4.4.
- Conclusion on compliance with the Restructuring Communication
- 7.
- ASSESSMENT OF AID GRANTED TO THE BANK
- 7.1. EXISTENCE AND AMOUNT OF AID
- 7.1.1.
- Existence of aid in the measures granted under the Greek Bank 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 measure (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.
- HFSF’s participation in the Spring 2013 recapitalisation to cover the capital needs of the stress test of 2013 (measure B4)
- 7.1.3.5.
- Conclusion on measures B1, B2, B3 and B4
- 7.1.4.
- Conclusion on the existence and total amount of aid received by the Bank
- 7.2. LEGAL BASIS FOR THE COMPATIBILITY ASSESSMENT
- 7.2.1.
- Legal basis for the assessment of the compatibility of the liquidity support to the Bank (measure L1)
- 7.2.2.
- Legal basis for the assessment of the compatibility of the preference shares (measure A)
- 7.2.3.
- Legal basis for the assessment of the compatibility of the State-guaranteed ELA (measure L2)
- 7.2.4.
- Legal basis for the assessment of the compatibility of the HFSF recapitalisations (measures B1, B2, B3, and B4)
- 7.3. COMPLIANCE OF MEASURE L2 WITH THE 2008 BANKING COMMUNICATION, THE RECAPITALISATION COMMUNICATION AND THE 2011 PROLONGATION COMMUNICATION
- 7.4. COMPLIANCE OF MEASURES B1, B2, B3 AND B4 WITH THE 2008 BANKING COMMUNICATION, THE RECAPITALISATION COMMUNICATION, THE 2011 PROLONGATION COMMUNICATION AND THE 2013 BANKING 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, the Recapitalisation Communication and the 2011 Prolongation Communication
- 7.5. COMPLIANCE OF THE ACQUISITIONS OF ATE TRANSFERRED ACTIVITIES, OF GENIKI, OF THE CYPRIOT TRANSFERRED ACTIVITIES AND OF MBG WITH THE RESTRUCTURING COMMUNICATION
- 7.5.1.
- Compliance of the acquisition of the ATE Transferred Activities with the Restructuring Communication
- 7.5.1.1.
- Effect of the acquisition of the ATE Transferred Activities on the long-term viability of the Bank
- 7.5.1.2.
- Effect of the acquisition of the ATE Transferred Activities on the amount of aid needed by the Bank
- 7.5.1.3.
- Distortive effect of the acquisition of the ATE Transferred Activities on competition
- 7.5.1.4.
- Conclusion on the acquisition of the ATE Transferred Activities
- 7.5.2.
- Compliance of the acquisition of Geniki with the Restructuring Communication
- 7.5.2.1.
- Effect of the acquisition of Geniki on the long-term viability of the Bank
- 7.5.2.2.
- Effect of the acquisition of Geniki on the amount of aid needed by the Bank
- 7.5.2.3.
- Distortive effect of the acquisition of Geniki on competition
- 7.5.2.4.
- Conclusion on the acquisition of Geniki
- 7.5.3.
- Compliance of the acquisition of the Cypriot Transferred Activities with the Restructuring Communication
- 7.5.3.1.
- Effect of the acquisition of the Cypriot Transferred Activities on the long-term viability of the Bank
- 7.5.3.2.
- Effect of the acquisition of the Cypriot Transferred Activities on the amount of aid needed by the Bank
- 7.5.3.3.
- Distortive effect of the acquisition of the Cypriot Transferred Activities on competition
- 7.5.3.4.
- Conclusion on the acquisition of the Cypriot Transferred Activities
- 7.5.4.
- Compliance of the acquisition of MBG with the Restructuring Communication
- 7.5.4.1.
- Effect of the acquisition of MBG on the long-term viability of the Bank
- 7.5.4.2.
- Effect of the acquisition of MBG on the amount of aid needed by the Bank
- 7.5.4.3.
- Distortive effect of the acquisition of MBG on competition
- 7.5.4.4.
- Conclusion on the acquisition of MBG
- 7.6. COMPLIANCE OF MEASURES A, B1, B2, B3, AND B4 WITH THE RESTRUCTURING 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.
- Own contribution by the Bank: divestments and cost cutting
- 7.6.3.2.
- Burden-sharing by historical shareholders and new capital raised on the market
- 7.6.3.3.
- Burden-sharing by subordinated debt holders
- 7.6.3.4.
- Conclusion on own contribution and burden-sharing
- 7.6.4.
- Measures to limit distortions of competition
- 7.6.5.
- Monitoring
- 7.6.6.
- Conclusion on the compliance of measures A, B1, B2, B3 and B4 with the Restructuring Communication
- 8.
- CONCLUSION
- Article 1
- Article 2
- ANNEX
- PIRAEUS BANK — 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
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