EU approves Greek bad loan scheme -statement

The European Commission has approved a Greek plan to reduce bad loans at the country's banks, saying on Thursday it did not violate state aid rules.

The scheme, known as Hercules, aims to bring down the stock of bad, or non-performing loans which are weighing on Greek banks, without distorting the market through government subsidies.

"The European Commission has found Greek plans aimed at supporting the reduction of non-performing loans of Greek banks to be free of any state aid," the Commission said in a statement.

Also Read: European Commission gives conditional approval to Novelis' proposed acquisition of Aleris