The European Commission has authorized a recapitalization of 4,6 billion euros for Caixa Geral de Depositos (CGD), a Portuguese public bank.
Under the deal approved by EU Competition Commissioner Margrethe Vestager, more than half of the increase will be made using public funds.
"Last night, Commissioner Vestager reached an agreement in principle with the Portuguese authorities in the direction of allowing a recapitalization of CGD at market conditions", announced a spokesman for the EU Commission, underlining that the agreement reached was at market conditions which means that technically it is not considered as real State aid.
According to the provisions, the Portuguese government will inject up to 2,7 billion into the Caixa Geral de Depositos and convert 900 million of investments into capital while. At the same CGD, the bank's task is to raise capital for a billion in subordinated securities.
