Moniz, Carlos Botelho; Melo, Pedro de Gouveia e; Ferreira, Luís do Nascimento --- "Southern Program Countries – Cyprus, Portugal, Spain" [2017] ELECD 1638; in Laprévote, François-Charles; Gray, Joanna; De Cecco, Francesco (eds), "Research Handbook on State Aid in the Banking Sector" (Edward Elgar Publishing, 2017) 381

Book Title: Research Handbook on State Aid in the Banking Sector

Editor(s): Laprévote, François-Charles; Gray, Joanna; De Cecco, Francesco

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783478071

Section: Chapter 14

Section Title: Southern Program Countries – Cyprus, Portugal, Spain

Author(s): Moniz, Carlos Botelho; Melo, Pedro de Gouveia e; Ferreira, Luís do Nascimento

Number of pages: 72

Abstract/Description:

This chapter addresses the EU State aid framework for the banking sector in three Southern European countries that were under a financial assistance programme: Cyprus, Portugal and Spain. It covers the main milestones in the strengthening, recapitalization and restructuring of the largest banks in those countries, and addresses the way in which bailout rules intertwine with EU State aid provisions. Contrary to what one might expect, funds channelled to the banking industry from the assistance programmes and close monitoring by the EU institutions and the IMF throughout the programmes, were not always sufficient to remedy the shortcomings surrounding the financial sector.