RBS tweaks EU state aid deal

Royal Bank of Scotland today said it had fine-tuned a deal to win European Union approval for state aid it has received, as it…

Royal Bank of Scotland today said it had fine-tuned a deal to win European Union approval for state aid it has received, as it called for investors to vote on its restructuring plan next month.

RBS, majority state-owned after receiving a British government bailout last year, said the EU deal had been amended so the bank will now cut its loan book through further disposals if it falls short of its 2013 balance sheet target by £30 billion pounds.

A deal unveiled earlier this month stipulated RBS would make disposals if the shortfall was 10 per cent of the target level.

The agreement is part of a wider restructuring plan, announced on November 3rd, under which RBS is to sell key businesses and receive an additional capital injection from the government to help it absorb future bad debts.

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RBS shareholders will be asked to vote on the proposed overhaul at a meeting on December 15th, the bank said.

RBS shares, which fell over 7 perc ent yesterdayday after Dubai said it was seeking to defer repayment on debt issued by its flagship property firms, were up 2.8 per cent at 34 pence by 9.30am this morning.

Reuters