Euro Rally Masks Growing Political Discord as EU Leaders Battle Over Debt
The euro’s two-month rally against the dollar is running into renewed rifts over Europe’s sovereign debt crisis just as optimism about the U.S. economy increases.
Slovene bank NLB wins EU okay for state aid for now
Slovenia’s largest bank Nova Ljubljanska Banka (NLB) won temporary EU regulatory approval on Monday for an emergency recapitalisation of up to 250 million euros ($350 million) aimed at complying with EU capital rules.
The clearance by the European Commission came the same day as unlisted NLB launched a share issue worth up to 250 million euros. [ID:nLDE72609Q]
NLB is 48,6-percent state-controlled while Belgian banking and financial group KBC (KBC.BR: Quote) holds a 30,6 percent stake.
The European Commission, tasked with policing fair play in the 27-country European Union, said it would wait for NLB to present a restructuring plan within six months before making a final decision on whether to clear the state aid.
«We need to make sure that NLB restructures in a way that ensures a sustainable future for the bank without continued state support and addresses distortions of competition caused by the aid,» EU Competition Commissioner Joaquin Almunia said in a statement.
The watchdog said NLB’s recapitalisation plan complied with EU state aid rules.
Bank stress tests to put EU finance regulation in spotlight
B NEW stress tests on the ability of Europe’s banks to withstand future losses will also be an «important litmus test» of the health of Europe’s financial regulation regime, European Commission economics chief Olli Rehn said yesterday.
03/6/2011
— Filed under: Business
Tags: EU, European Banking Authority
