BRUSSELS, Nov. 18 (Xinhua) -- The European Commission (EC) approved here on Wednesday the restructuring package for Belgium's KBC group.

    The EC approved the proposed restructuring measures and concluded that they were "compatible with the EU rules on state aid to remedy a serious disturbance in a member state's economy."

    After an in-depth investigation into KBC's situation, the European Commission found that the asset relief measure launched on June 30, 2009 is in line with state aid rules, and it is no longer concerned over the valuation and remuneration of the measure.

    "The in-depth restructuring of KBC will restore its long-term viability and limit distortions of competition, while at the same time taking into account financial stability concerns," said Competition Commissioner Neelie Kroes, voicing his satisfaction that "through close cooperation with the Belgian authorities, we have managed to strike the right balance."

    The commission said it was satisfied that the package of measures ensures that "KBC would pay a significant proportion of the restructuring costs, would restore the long-term commercial viability of KBC, and tackles the distortions of competition that result from the state aid."

    KBC is an integrated banking and insurance group, serving mainly retail customers, SMEs and private banking clients. It is one of the main financial institutions in Belgium.