Despite the best efforts of the special administrators, and the launch of negotiations with several potential counterparties, no concrete offers were forthcoming from investors indicating their willingness to assume the risks associated with the impaired assets, against a backdrop of worsening macroeconomic conditions and the new regulatory environment.
Unlike what happened in the past it was not possible to seek financial support from the Interbank Deposit Protection Fund, which, although it draws on the resources of the member banks, in the European Commission’s interpretation is tantamount to state aid and as such – according to the procedures announced and followed by the Commission since 2013, to which I will return shortly – can only be disbursed subject to burden sharing, i.e.