BRUSSELS, June 16 (Reuters) - European Union antitrust authorities approved on Tuesday an extension to Italy's bank guarantee scheme aimed at maintaining liquidity in the country's financial system.
The European Commission, which monitors state aid in the 27-nation European Union, had endorsed the scheme last November in line with its temporary framework on such assistance to deal with a deepening credit crisis. "The extension of the guarantee scheme for banks provides Italy with a means of maintaining confidence in its financial system and thus supporting the economy," Competition Commissioner Neelie Kroes said in a statement.
The EU's executive arm has approved similar schemes across the region. (Reporting by Foo Yun Chee, editing by Dale Hudson)