The EC has extended until the end of 2010 the liquidity support scheme for banks in Slovenia.

The European Commission has authorised the extension until 31st December 2010 of the liquidity scheme for the financial sector in Slovenia, under EU state aid rules. The scheme was initially approved on 20th March 2009 and it was prolonged on 19th October 2009 and on 15th April 2010.

The Commission considers the extension of the measures to be in line with its guidance on state aid to banks during the crisis and the recent adjustment of the rules for State guarantee, endorsed by the Ecofin Council at the meeting on the phasing out of the support measures for the financial sector on 18th May 2010.

The extended measures are well targeted, proportionate and limited in time and scope. The extended scheme includes higher premiums in order to provide an incentive for banks to refinance themselves on the markets without state support and to limit distortions of competition. Therefore, the Commission has concluded that these measures represent an appropriate means of remedying a serious disturbance in the Slovenian economy and as such are compatible with the Treaty on the Functioning of the European Union (TFEU).

In a number of Member States, a significant number of liquidity, recapitalisation and other support schemes for banks has been prolonged until the end of the year 2010.