October 13, 2009

European Union regulators approved on Tuesday an extension to the end of the year for a British bank aid scheme aimed at providing credit to companies hit by the liquidity squeeze. The British government had notified the European Commission of its credit guarantee and recapitalisation plan, part of London's support measures for the banking industry, in October last year.

The EU's executive Commission agreed in April to a prolongation of the scheme to Oct. 13, saying circumstances in the financial markets justified the move. "The Commission found the prolongation until 31 December 2009 to be in line with its communication on state aid to overcome the financial crisis," the Commission, which regulates competition and state aid in the EU, said in a statement.The Commission has approved similar schemes across the 27-country bloc.