2008/263/EC: Commission Decision of 27 June 2007 State aid C 50/2006 (ex NN 68/2006, CP 102/2006) implemented by Austria for BAWAG-PSK (notified under document number C(2007) 3038) (Text with EEA relevance)

The State guarantee of EUR 900 million implemented by Austria for the restructuring of BAWAG-PSK constitutes State aid within the meaning of Article 87(1) EC that is compatible with the common market subject to the obligations and conditions set out in Article 2.

1 The plan for restructuring BAWAG-PSK, as communicated to the Commission by Austria on 3 January 2007, shall be fully implemented.

2 The following assets shall be sold to a third party that is independent of the BAWAG-PSK group: (a) sale of an interest of more than 50 % in P.S.K. Versicherung AG and BAWAG-Versicherung Aktiengesellschaft, reflected in the balance sheet no later than […], and the granting of a call option for the acquirer for the rest of the shares; (b) completion of the sale of real estate, valued at EUR […] million in total as reflected in the balance sheet, no later than […]; (c) sale of the […] % interest in […], reflected in the balance sheet no later than […]; (d) sale of the 42,56 % interest in ATV Privat-TV Services AG, reflected in the balance sheet no later than […]; (e) sale of […], reflected in the balance sheet no later than […].

3 The volume of BAWAG-PSK loans to Austria shall be reduced to a maximum of EUR […] billion as of the end of the 2007 business year. This amount shall not be exceeded for a period ending on […]. Excluded there from are existing obligations of companies of the BAWAG-PSK group relating to future instalments under previously transacted procurement processes.

4 BAWAG-PSK shall not be selected for the issuing of State bonds for a period of […] beginning on […].

5 No aid other than that referred to in Article 87(2) of the EC Treaty, or aid granted under research projects jointly financed by the European Union, or aid to general training within approved schemes, or aid for energy savings within approved schemes, shall be granted to BAWAG-PSK until 31 December 2010. No restructuring aid can be approved within the next 10 years.

6 For the purpose of monitoring compliance with the conditions set out in paragraphs 1 to 5, Austria shall provide regular reports on the state of progress of BAWAG-PSK's restructuring until 2010. The first annual report shall be submitted in January 2009. The following reports will cover the years 2009 and 2010 and should respectively be submitted by end of March 2010 and 2011.

Austria shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.

This Decision is addressed to the Republic of Austria.