EC: Decisons on state aid in Hungary and Italy

The EC has found that Hungarian and Italian plans aimed at transferring non-performing loans off the balance sheets of Hungarian and Italian banks to be free of any state aid, concluding that the pricing models used by the Hungarian asset management company ensure it will buy non-performing loans at market prices. The EC decided that, under the state guarantee scheme arranged by Italian authorities, the state will be remunerated in line with market conditions for the risk it will assume by granting a guarantee on securitised non-performing loans.