European Union competition authorities announced provisional approval on Wednesday for around 680 million euros of Greek state aid to support the sale of troubled T Bank.
The European Commission gave its blessing for «state support granted by the Hellenic Deposit and Investment Guarantee Fund ("HDIGF") to facilitate the acquisition of the economic activities of the Greek T Bank by Hellenic Postbank in the context of T Bank's resolution,» a statement said.
EU competition commissioner Joaquin Almunia said the aid being allowed «was restricted to the minimum necessary to compensate the buyer for the lower value of the assets transferred as compared to the transferred liabilities."
Almunia said Greece had six months in which to submit «an updated restructuring plan for Hellenic Postbank which takes into account the integration of T Bank's activities."
That action would likely trigger an «automatic» extension of approval pending a final decision, he added.