INHALT

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