EC approves amendment to state aid for restructuring Poland's Getin Noble Bank (updated)

BNP Paribas Bank Polska SA

24/11/2023 15:44

(Adds background, details)
       WARSAW, Nov 24 (Reuters) - The European Commission said
on Friday it has approved an amendment to state aid for the
restructuring of Poland's Getin Noble Bank that will enable a
prompt sale of the bridge bank set up.
    Poland started a compulsory restructuring of the bank in
September 2022 in a move to protect customer deposits totalling
39.5 billion zlotys ($9.84 billion) and safeguard the stability
of the financial system.
    The process brought Getin Noble under the control of a
bridging bank whose shareholders include the Bank Guarantee Fund
(BFG) and a unit held jointly by a group of Poland's biggest
commercial banks.
    The European Commission said that Poland wants to carve out
a portfolio of assets from the bridge bank with a nominal value
of 6.5 billion zlotys, which translates to approximately 1.36
billion euros ($1.48 billion). 
    "The Commission found that the notified measure will
facilitate the sale of the bridge bank and allow the BFG to
maximise the recovery value of the portfolio, therefore
minimising the bank's liquidation costs borne by the Polish
resolution fund," it said in a statement.
        It added that the portfolio will be transferred to a
dedicated asset management vehicle controlled by the BFG and
that the vehicle will pay for the assets with bonds that will be
guaranteed by the Polish resolution fund.
    The sales process of the bridge bank has already started. 
           
($1 = 4.0130 zlotys)       
($1 = 0.9168 euros)

 (Reporting by Anna Koper and Alan Charlish; Editing by Louise
Heavens and Susan Fenton)
 ((anna.koper@thomsonreuters.com; +48 22 104 25 24; Reuters
Messaging: anna.koper.reuters.com@thomsonreuters.com))