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EU Court says Italy's Tercas bank rescue was legal, overturns Commission rejection

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BRUSSELS (Reuters) – European Union judges ruled on Tuesday that Italy’s rescue plan for ailing Tercas bank in 2014 was legal and annulled a European Commission’s decision that rejected the plan and forced Rome to recoup financial aid to the lender.

The rescue of the bank, which was later sold to Banca Popolare di Bari, was orchestrated by Italy’s deposit guarantee fund, the Fondo Interbancario di Tutela dei Depositi (FITD), which is a private entity.

The Commission argued that the fund had illegally acted on behalf of the Italian state and ordered Italy to recuperate some 300 million euros ($340.50 million) of funding deemed as state aid, but the EU general court said on Tuesday that “the FITD acted independently when it adopted the measures for the benefit of Tercas.”

(Reporting by Francesco Guarascio)

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