commiss decis state aid nn austria plan implement bank burgenland ag notifi document number german text authent text eea relev ec commiss european commun regard treati establish european commun subparagraph articl thereof regard agreement european econom area articl thereof regard council regul ec march lai detail rule applic articl ec treati articl thereof call interest parti submit comment pursuant provis cite regard comment procedur letter date june supplementari commun date juli septemb austria notifi guarante agreement conclud provinc burgenland present commiss restructur plan bank burgenland ag letter date june commiss notifi austria decis initi accord articl ec treati formal investig procedur respect state aid measur septemb applic extens deadlin grant austria submit posit decis initi procedur document inform commiss decis initi procedur publish offici journal european union commiss invit interest parti submit comment aid comment receiv letter date decemb austria announc part process privatis bank burgenland ag intend amend aid measur notifi letter date januari commiss notifi austria decis extend procedur articl ec treati plan amend aid measur restructur bank burgenland ag februari austria submit comment commiss decis extend procedur publish offici journal european union commiss invit interest parti submit comment comment receiv ii background bank burgenland ag bb bb region mortgag bank regist offic eisenstadt busi confin larg territori feder provinc burgenland main sharehold bb hold equiti remain portfolio invest bb balanc sheet eur billion rank list austrian bank guarante agreement june decemb provinc burgenland held bb equiti import sharehold bank austria bausparkass wüstenrot remain share portfolio invest purchas bank austria share guarante agreement octob provinc burgenland conclud option contract bausparkass wüstenrot purchas share step privatis bb region mortgag bank bb task promot monetari credit transact burgenland main busi grant mortgag loan issu mortgag bond municip bond virtual rang bank financi servic share total bank deposit market burgenland lend market section burgenland region mortgag bank law lgbl version publish lbgl bb default provinc burgenland liabl defici guarantor section gener civil code abgb bank liabil provinc burgenland defici guarantor bb legal predecessor virtual unchang form statutori arrang author guarantor liabil forc june provinc burgenland receiv liabil fee provid statutori defici guarante bb financi difficulti audit bb annual account fraud involv loss eur million discov connect credit manag how bau ag insolv auditor certif annual account submit how forg emerg actual land charg certif drawn collater loan suffici cover liabil valuat adjust eur million exceed bank core capit eur million led directli bb insolv section bank law bwg bb appli imposit court supervis manag procedur special arrang insolv law credit institut austria opinion tantamount bankruptci bb meant provinc burgenland defici liabil effect report kpmg austria wirtschaftsprüfungsgesellschaft june amount cover provinc burgenland event bb insolv eur million order avoid consequ provinc burgenland conclud guarante agreement june amount eur million cover bb bad debt repres excess balanc sheet debt how fraud opportun commiss comprehens audit account receiv show system shortcom reveal fraud affect credit exposur addit valuat adjust eur million identifi audit place autumn put bank back situat valuat adjust exceed bank core capit intervent provinc prevent initi court supervis manag procedur order avoid immin loss capac sharehold defici guarantor provinc burgenland conclud bank austria ag bb framework agreement bank austria ag waiv claim bb iii descript aid liabil assum provinc burgenland vi vi bb guarante agreement june provinc burgenland assum vi vi bb liabil eur million annual interest current account basi respect guarante amount detail loan commit connect circumst how case agreement bb oper profit cover amount guarante amount guarante reduc bb annual profit need distribut prefer dividend includ back payment respect previou year guarante call bb earliest account financi year close framework agreement octob order cover adjust eur million discov comprehens audit account receiv framework agreement octob conclud bb main creditor bank austria creditanstalt ag waiver claim bank austria ag bb bank austria creditanstalt ag waiv claim bb total eur million fortun claus bank austria ag bb claim waiver exchang interest bear fortun claus part bb repay full amount bank austria claim interest instal start june date bb repai amount claim waiver interest accru date equal annual instal interest payabl year euribor basi point june year june futur redempt fortun claus base bb annual profit take account movement reserv payment prefer sharehold previou financi year guarante agreement event bb unabl meet fortun oblig provinc burgenland addit agreement decemb assum irrevoc defici guarante bank austria ag effect year period provinc burgenland cover shortfal annual instal amount paid bb bank austria ag bank austria ag agreement bb provinc burgenland free meet fortun oblig bank austria ag ahead deadlin set sale share bank austria ag provinc burgenland bank austria ag sold share bb eur share provinc burgenland reason initi procedur decis initi formal investig procedur articl ec treati commiss provision classifi measur assess state aid mean articl ec treati articl eea agreement aid grant state resourc affect econom posit competitor member state improv bank financi situat distort threaten distort competit affect trade member state basi provision assess commiss conclus aid examin light commun guidelin state aid rescu restructur firm difficulti hereinaft guidelin compat provis ec treati commun guidelin applic agre austria bb firm difficulti mean section guidelin inform miss number matter outstand doubt compat aid measur common market restor firm long term viabil accord point guidelin commiss endors restructur plan case individu aid measur assess plan capabl restor long term viabil firm reason timescal basi realist assumpt restructur plan initi submit commiss doubt market assumpt forecast viabil object precis draw conclus prospect success propos restructur measur difficult ascertain market assumpt restructur measur base long term profit forecast notif commiss criticis fact basi whatsoev provid forecast doubt target return realist achiev austria request provid detail forecast data underli assumpt commiss call austria provid detail inform compar figur bank sector support statement difficulti materialis bb staff spend materi result opportun bank reduc staff number limit commiss note inform provid austria reason firm difficulti part summari financi difficulti real reason difficulti inadequ credit risk manag detail analysi corpor manag structur specif manag fail analysi commiss view assess prospect bb restructur commiss doubt bb difficulti suffici recognis address restructur plan austria ask submit detail analysi past fail futur prospect problem regard corpor structur manag supervisori method control report concept techniqu introduc commerci base decis make procedur bb privatis austria mention intent refer initi step plan date complet privatis process detail provid propos procedur condit relev factor commiss request austria provid inform stage privatis procedur reach privatis implement basi transpar discriminatori procedur futur timet look avoid undu distort competit derog articl ec treati condit aid advers affect trade condit extent contrari common interest point guidelin state measur mitig advers effect aid competit condit take form limit reduct compani presenc relev product market sale product capac subsidiari reduct activ limit reduct proport distort effect aid rel import firm market market remedi compens measur propos austria consist sale hold closur branch decis desist grant feder loan descript compensatori measur extent affect bb asset employ situat vagu place commiss assess effect commiss need detail inform effect measur asset employ situat futur market segment posit bb explicit quantif measur reduct effect term balanc sheet total burgenland region consist classifi object assist area region mean articl qualifi region aid austria refer point guidelin emphasis account assess compensatori measur give explan put forward specif aspect point question state assess criteria guidelin equal applic assist area criteria reduct capac market excess structur capac stringent austria develop aspect commiss unabl establish criterion appli sum commiss possess inform undertak adequ assess propos compensatori measur doubt light fact plan reduct measur suffici mitig distort effect aid competit aid limit minimum accord point guidelin aid limit strict minimum need avoid provid undertak surplu cash aggress market distort activ expans guidelin state aid beneficiari expect make signific contribut restructur plan resourc includ sale asset essenti firm surviv austria argu state measur restructur bb inject liquid provinc burgenland interven sole grant guarante guarante fortun agreement provid bank receipt reduc guarante amount commiss unabl basi inform determin precis aid absolut minimum practic guarante similar effect capit inject addit commiss doubt bb contribut complet writedown hidden reserv reduct staff oper cost met criterion quot signific contribut quot iv comment austria decis initi procedur basi restructur plan austria submit comment decis initi procedur provid inform point decis import commiss decis restor firm long term viabil austria submit post analysi bb corpor manag structur gave detail reason bank financi difficulti main difficulti austria inadequ credit risk manag made bank suscept fraudul behaviour similarli adjust discov audit attribut fact bank difficulti appear limit problem area fact locat contribut significantli ensur compensatori measur introduc immedi addit fraud bb suffer enorm loan loss result huge structur problem lack failur compli intern control system structur shortcom resolv thing implement risk manag system strengthen intern audit part extens organis restructur bank result success implement restructur measur highlight review conduct austrian nation bank februari behalf bank supervisori author comprehens assess bb acknowledg bank differ firm difficulti mean guidelin number wai displai characterist list commiss typic firm difficulti instanc adjust made view tidi portfolio bb current busi activ basic viabl remain cautiou assess futur develop develop year shown deposit busi stabilis loss suffer recov part austria provid result bb ordinari busi activ austria compar bb austrian bank sector excess capac relev market bb bb employe bb small region bank account bank branch total burgenland plan privatis bb austria make point plan moment bb privatis end latest end work group set prepar sale procedur bank firm hsbc trinkau amp burkhardt charg privatis process austria gener econom posit bb strateg object provid basi calcul indic steadi improv profit year basi inventori volum averag interest flow liquid calcul januari plan volum condit drawn part plan process control depart conjunct head specialist depart board manag interest incom calcul entir plan horizon basi current interest rate assumpt futur interest rate made calcul present low level interest rate approach compli event principl cautiou plan restructur measur bb fraud view hand address fashion financi difficulti prepar bank market develop opportun year ahead sum head quot comprehens reorganis credit risk manag quot quot concentr bb core busi quot quot strengthen bb role region bank quot quot comprehens streamlin cost manag quot avoid undu distort competit view small size bb austria made cautiou assess criterion restor long term viabil avoid undu distort competit indic guidelin point small medium size enterpris gener requir implement compensatori measur austria gave reason bb slightli exceed threshold sme austria explain bank small size surpris bb posit offer substanti compensatori measur true bb subsidiari activ kei area bank sale hold significantli erod bank substanc bb appreci foreign busi number domest branch extrem small austria insignific market posit bb rule danger competit distort difficulti attribut aggress market behaviour event lesser magnitud mention connect fraud austria maintain aid bb increas bank equiti simpli provid collater perform loan result adjust carri liabil prevent exceed bb core capit austria point bb exclus area activ locat assist area cover articl ec treati refer rule guidelin recit aggrav circumst obtain time financi difficulti compensatori measur sale hold closur branch decis desist grant feder loan austria provid detail reduct effect measur gave reason reduct jeopardis bank viabil aid limit minimum austria stress aid question limit minimum guarante agreement suffici maintain satisfactori level solvenc bb made adjust total eur million resourc cope loss balanc total eur million resourc provinc provid bb capit offset difficulti bear wit attempt limit type amount aid minimum bb made consider effort bring staff cost averag level customari bank sector plan medium term sell properti need measur bank striven streamlin busi amend aid measur letter date decemb austrian author notifi commiss part bb privatis intend amend aid measur notifi previous guarante agreement june amend bb annual profit longer reduc amount guarante provinc burgenland reduc amount repres guarante claim aris how affair accru bb year ahead guarante payment extend bb call guarante provid provinc burgenland earliest annual account financi year present close provinc make open guarante payment bb full part moment annual account financi year close june current interest rate juli year interest rate appli year current account basi respect amount guarante similarli juli juli year interest rate appli year current account basi respect guarante amount framework agreement octob amend bb annual profit longer meet fortun oblig bank austria creditanstalt ag provinc burgenland meet fortun oblig bank austria creditanstalt ag pai amount outstand guarante agreement immedi prior privatis bb payment bank austria creditanstalt ag austria amend annual profit reduc amount guarante effect bb privatis provinc burgenland sell bb guarante remain unchang amount guarante reduc bb annual profit bb fortun oblig remain unchang vi posit austria decis extend procedur austria provinci govern regard bb privatis kei compon restructur plan provid guarante bank long term viabil decis provinci govern novemb zl measur initi sale put place announc media novemb call express interest publish march april latest complet compulsori due dilig process negoti individu bidder begin order obtain price bb provinc burgenland releas bb oblig fortun agreement bank austria creditanstalt ag appli guarante agreement june provinc burgenland bb bb buyer bb encumb view austria bb requir transfer profit doubt buyer bank found potenti buyer interest transact expect profit number year abolit requir bb transfer profit condit forthcom privatis notifi restructur plan bb privatis essenti compon realist chanc success provid potenti buyer bb prospect avail immedi bb profit turn condit obtain sale price vii assess aid measur state aid articl ec treati guarante agreement provinc burgenland bb involv state resourc conclud condit accept market economi privat investor austria maintain guarante agreement provinc burgenland avoid greater financi loss agreement restrict provid absolut minimum prevent imposit court supervis manag result statutori requir provinc step defici guarantor unlimit defici liabil meant financi oblig guarante exceed austria maintain legal view provinc burgenland act accord quot market economi privat investor quot principl connect object austria submit calcul support assert kpmg report june refer paragraph put eur million amount cover provinc burgenland event bb insolv lower aggreg guarante point figur calcul comprehens audit account receiv conduct half view todai perspect higher uncertain austria arriv figur eur million judgment hytasa european court justic rule quot distinct drawn oblig state assum owner share capit compani oblig public author quot bb set limit compani provinc owner share compani liabl debt amount liquid asset aforement judgment court justic state quot oblig aris cost redund payment unemploy benefit aid restructur industri infrastructur consider purpos appli privat investor test quot austria made distinct calcul base cost incur provinc basi statutori default liabil cost bear relationship role provinc burgenland owner share bb result special statutori requir state default liabil concern privat investor measur benefit undertak financi difficulti thing consid total involv eur million consider amount guarante underwritten provinc expect make return accept market economi privat investor aid question favour bb artifici advantag competitor distort competit main line busi bb oper region nation level financi servic sector characteris grow integr intern market achiev import area strong competit financi institut member state increas result introduct singl currenc competit threaten distort measur effect current potenti competitor member state measur constitut state aid mean articl ec treati austria challeng view notifi measur concern albeit requir compat aid measur common market aid measur grant approv aid scheme commiss assess compat common market light articl ec treati guidelin accord articl ec treati save provid treati state aid grant aid grant state resourc form whatsoev distort threaten distort competit favour undertak product good affect trade member state incompat common market articl provid except principl state aid incompat common market derog articl provid ground aid deem compat common market aid measur assess regard aid social charact grant individu consum point aid make good damag caus natur disast except circumst point aid grant economi area feder republ germani affect divis germani point derog applic present case derog articl point aid serv promot execut import project common european interest remedi disturb economi member state regard aid promot cultur heritag conserv commiss assess aid measur basi derog articl base assess aid facilit develop econom activ aid advers affect trade condit extent contrari common interest relev commun guidelin commiss view guidelin applic present case refer recit commiss take view aid measur financ restructur undertak regard restructur aid accord guidelin restructur aid admiss run counter common interest guidelin approv aid commiss subject condit elig undertak aid commiss accept austria explan classifi bb firm difficulti point read conjunct point guidelin point guidelin state firm difficulti quot unabl resourc fund obtain owner sharehold creditor stem loss intervent public author condemn busi short medium term quot circumst obtain case bb intervent provinc burgenland bb court supervis manag condemn busi mean guidelin basic principl point guidelin restructur aid allow strict criteria met distort competit offset benefit flow firm surviv clear net effect redund result firm busi exacerb local region nation employ problem exception firm disappear result monopoli tight oligopolist situat exclud bb posit strong bankruptci subsequ partial sale creat monopoli oligopolist situat austria argu bb virtual import bank busi burgenland raiffeisen group rural credit cooper bb disappear lead greater concentr market structur strengthen group argument basi inform convinc bank save bank peopl bank present burgenland note effect hypothet liquid bb difficult calcul bb liquid number branch reduc likelihood foreign bank establish burgenland take bb busi extrem small provinc econom situat lack attract conceiv basic financi servic short suppli rural region burgenland assess long term viabil point guidelin grant aid condit implement restructur plan endors commiss case aid measur assess respect abil restor long term viabil firm reason timescal restructur plan limit durat base realist assumpt describ circumst led firm difficulti provid basi assess propos measur enabl firm progress structur afford prospect long term viabil enabl stand feet cover cost includ depreci financi charg gener return capit enabl compet marketplac commiss base assess inform provid austria includ plan individu restructur measur predict return invest restructur period base cautiou apprais futur develop hand result normal busi activ annual account plan calcul analysi inadequ credit risk manag respons problem structur deficit commiss base assess inform provid austria progress implement restructur plan amend individu measur schedul complet plan privatis bb detail forecast data underli assumpt commiss decis initi procedur express doubt forecast long term profit austria subsequ provid calcul base principl cautiou plan light econom environ thrive busi locat grow resid popul increas wealth eu enlarg continu improv profit year period born figur normal busi activ annual account futur develop commiss restructur plan altogeth plausibl complet addit austria provid inform compar figur materi staff cost rel credit institut compar structur compar size show bb significantli averag capita staff cost materi cost austria provid addit inform support analysi compani manag structur manag fail commiss decis initi procedur inadequ bb financi difficulti includ fraud poorli conceiv risk polici absenc risk manag intern control system inadequ report arrang instrument bank control ineffici organis procedur summari restructur measur introduct risk polici implement independ risk manag approach asset alloc creation manag oper structur introduct manag inform system streamlin cost manag commiss oper function financi measur date plan suitabl restor bank long term viabil austria notifi commiss provinci govern view privatis bb essenti compon restructur plan decis provinci govern novemb zl measur launch sale process introduc announc media novemb call express interest publish negoti remain bidder begin april complet compulsori due dilig process commiss assum good chanc bank privatis success avoid undu distort competit derog articl ec treati subject condit aid advers affect trade condit extent contrari common interest point guidelin state measur mitig advers effect aid competitor condit involv limit reduc firm presenc relev product market sell product capac subsidiari reduc activ limit reduct proport distort effect aid rel import firm market market point guidelin commiss region develop account assess restructur aid assist area fact ail firm locat assist area justifi permiss approach aid restructur point assess criteria guidelin equal applic assist area region develop consid assist area commiss appli stringent condit capac reduct requir market excess structur capac region develop justifi distinct drawn area elig articl elig articl account greater sever region problem area burgenland region consist classifi object assist area assist area mean articl exist qualifi region aid admiss maximum net aid intens bb appear adapt econom circumst assist area result presenc year stand reason commiss view financi difficulti encount bank area acut case econom industri advanc region bb small enterpris bank austria balanc sheet eur billion total earn interest revenu yield secur provis net earn financi transact oper revenu eur million employe bank rank sme viewpoint level employ assess financi strength examin view bank small size locat assist area compensatori measur offer suffici mitig distort effect aid competit compensatori measur restructur plan austria initi offer sell hold close branch desist grant feder loan decis initi procedur commiss point suffici detail inform make proper assess effect measur part vagu term contribut ask inform austria subsequ provid inform measur reduct effect announc wai offer suitabl compensatori measur part bb examin austria made point connect sale hold bb dispos hold amount eur million oper period juli result hold portfolio decemb reduc inform provid austria bb asset dispos possess strateg hold hidden reserv ascertain prudenti report prepar bb auditor recent year dispos busi asset erod bb substanc extent surviv threaten reduct measur bb close exist branch parndorf part restructur closur parndorf branch equival reduct market presenc closur branch austria state number bb branch oper domest market extrem small repres low branch densiti rural region burgenland except bb notic foreign busi sopron hungari bank singl subsidiari light gener situat bank sector repres import commit futur profit market context intern bank competit closur result turnov loss direct signific appreci deterior earn prospect addit austria promis bb restrict activ desist grant feder loan lend account total lend compar import lucr area busi feder govern excel credit rate borrow loan repres risk bank subject capit charg addit gener consider risk free interest earn commiss examin argument inform provid conclus small size bank tini market presenc compensatori measur jeopardis viabil addit past decis bank reorganis regard reduct market presenc suffici case bank concern pursu expansionari busi polici year preced econom difficulti case smaller bank bigger bb commiss requir reduct branch network commiss opinion compensatori measur implement plan promis suffici mitig competit distort effect aid measur question aid limit minimum commiss opinion austria provid suffici evid amount aid grant limit strict minimum need enabl restructur undertaken light exist financi resourc bank sharehold bank provid surplu cash surplu capit misus inappropri expans busi detriment competitor aid eur million grant bb provinc burgenland guarante agreement calcul hand adjust eur million discov wake fraud adjust eur million discov audit account receiv cover core capit eur million essenti bank short term surviv bank court supervis manag default guarante trigger inject addit capit result bank competit posit strengthen provinc guarante bb suffici preserv satisfactori degre solvenc guarante agreement cover adjust respect proce perform loan account shortfal interest bad loan bank make good addit guarante agreement june conclud time annual account drawn bb made adjust amount eur million octob advers public larg number custom withdrew substanti credit balanc save time deposit secur hold amount eur million account bb balanc sheet loss made good bank sum bb effort run hidden reserv year reduc staff cost eur million materi cost cost reduct amount eur plan commiss view aid limit minimum need viii conclus aid total eur million consist measur guarante agreement date june provinc burgenland bb eur million interest framework agreement octob consist part claim waiver part bank austria bb fortun agreement contract parti guarante agreement part provinc burgenland bb amount eur million condit presenc state aid pursuant articl ec treati met state resourc treatment favour specif undertak competit distort effect effect trade member state derog principl state aid incompat common market derog articl conjunct commun guidelin state aid rescu restructur firm difficulti applic assess light criteria laid guidelin commiss conclus restructur measur implement plan reason logic enabl bb restor long term viabil commiss view dispos closur cutback implement plan promis suffici offset competit distort effect aid measur question guarante agreement june octob limit commiss view strict minimum need enabl restructur undertaken light exist financi resourc bank sharehold bank provid surplu cash surplu capit misus inappropri expans busi detriment competitor adopt decis articl state aid measur bank burgenland ag bb compat common market guarante agreement june part provinc burgenland amount eur million interest framework agreement octob compris guarante agreement part provinc burgenland amount eur million articl decis address republ austria brussel commiss mario monti member commiss oj regul amend act access oj oj oj balanc sheet eur billion judgment court justic septemb join case kingdom spain commiss european commun ecr oj case spain commiss ecr paragraph footnot commiss decis ec juli give condit approv aid grant itali banco di napoli oj commiss decis ec novemb condition approv aid grant itali public bank banco di sicilia sicilcassa oj commiss decis ec octob condition approv aid grant franc société marseillais de crédit oj commiss decis ec june condition approv aid grant franc crédit foncier de franc oj