3.4.1.3 The Impaired Assets Communication

On 26 March 2009, the Commission adopted a Communication that deals with asset relief measures: the “Impaired Assets Communication” (often referred to as “IAC”).1 In the IAC, the Commission clarifies the rationale of asset relief as a measure to safeguard financial stability and underpin bank lending. The Commission recognises that uncertainty about the valuation and location of assets lead may lead to a credit crunch.2 The main purpose of asset relief measures is therefore to boost market confidence. The IAC contains guidelines on the application of State aid rules to asset relief measures. The IAC will be discussed extensively in chapter 9 of this PhD-study.