The European Union (EU) has approved the restructuring plan of Lloyds Banking Group, the restructuring plan and an illiquid asset back-up facility of Dutch-based financial institution, ING Groep NV, reported Bloomberg. It has also approved the asset relief and restructuring package for the Belgian KBC Group.
In a statement the European Commission (EC), the EU’s Brussels-based executive arm, said that Lloyds, the UK-based major mortgage lender and ING agreed to part with their insurance units and KBC also plans to sell its divisions in central and eastern Europe to win EU’s support.
Reportedly, EC is asking banks that had received government funds to sell their assets to restrict them from gaining an unfair advantage. Governments across the bloc have injeced approximately E200 billion into banks since the onset of credit crisis in 2007.
At a news conference, Neelie Kroes, commissioner of EU Competition, said: “The Lloyds, ING and KBC decisions all demonstrate that the commission takes seriously its role as guarantor of EU state aid rules and the single market, the fair level playing field. The restructuring of the banks will ensure their long-term viability,” reported the news agency.
