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EU OKs extended support for Greek financial firms

Published 01/25/2010, 07:02 AM
Updated 01/25/2010, 07:06 AM

BRUSSELS, Jan 25 (Reuters) - European Union regulators approved on Monday the extension of a Greek support package for credit institutions until June 30, saying the steps complied with rules on state aid for firms hit by the financial crisis.

The support measures consist of a recapitalisation scheme, a guarantee scheme and support through the issuance of Greek state special-purpose securities to credit institutions, the executive European Commission said in a statement.

"The extended measures are limited in time and scope. The Commission has therefore concluded that they represent an appropriate means of remedying a serious disturbance in the Greek economy," the statement said.

The measures were initially approved on Nov. 19, 2008 and prolonged once on Sept. 18, 2009. (Reporting by Jan Strupczewski and Dale Hudson)

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