L 126/32 Official Journal of the European Communities 28.4.98 COMMISSION COMMISSION DECISION of 18 November 1997 concerning counter-guarantees given by the German Federal State of Sachsen- Anhalt to cover guarantees of the Biirgschaftsbank Sachsen-Anhalt GmbH in favour of companies in difficulty (Only the German text is authentic) (Text with EEA relevance) (98/276/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Articles 92 and 93 thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 61 thereof, Having given notice to the other Member States and the parties concerned to submit their comments, in accord- ance with Article 93(2) of the Treaty, Whereas: On 9 October 1996 the Commission decided to initiate the procedure pursuant to Article 93(2) of the EC Treaty with regard to an aid programme of the German Federal State Sachsen-Anhalt together with the Burgschaftsbank Sachsen-Anhalt GmbH (hereinafter referred to as ‘the guarantee bank’). The guarantee bank set up a special guarantee scheme for tirms in difficulty (‘Sonderbiirgschaftsprogramm Liquidi- tatssicherung’) under which firms established in Sachsen- Anbhalt that are experiencing liquidity problems owing to external factors beyond their control which jeopardise their continued operation may receive guarantees covering up to 90 % of loans, which they would not receive from private banks otherwise. The programme started in December 1994 and was running for applica- tions submitted until the end of 1995. The Land Sachsen-Anhalt took over a global counter-guarantee initially limited to an amount of DEM 100 million. The amount was reduced to DEM 16 million in April 1996, that is, after the end of the period allowed for applica- tions. The Land is represented in the authorising committee (Bewilligungsausschuf}) of the guarantee bank. Decisions to grant guarantees covered by the counter- guarantee of the Land could not be taken without the assent of the representatives of the Land Government. The aid programme, which, in breach of Article 93(3) of the EC Treaty, was not notified, was in force for applica- tions submitted during the years 1994 and 1995 (the period for the submission of guarantee applications). The Commission had doubts whether the aid programme might be considered compatible with the common market, because it aims to help companies in difficulties to continue their businesses without adhering to Community guidelines on State aid for rescue and restructuring (hereinafter: ‘the Guidelines’) (!). Germany was informed of the decision to initiate the procedure by letter dated 22 October 1996. It was requested to submit its comments. The other Member States and interested parties were informed and invited to submit comments through the publication of the letter in the Official Journal of the European Communities (*). Germany submitted its comments by letter dated 18 December 1996. No comments were received from any other party. () OJ C 368, 23. 12. 1994, p. 12. () OJ C 35, 4. 2. 1997, p. 10.