The European Free Trade Association’s Surveillance Authority has extended rules to allow governments to support their financial industries.
The ESA said it tightened conditions for granting state guarantees and added a “new requirement of a viability plan,” according to a statement on its website today.
“In addition, recapitalization and impaired assets measures will now be matched for all banks with an obligation to present a restructuring plan,” it said.
ESA monitors the compliance of European Economic Area rules in Iceland, Norway and Liechtenstein.
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