Cyprus Popular Bank gained EU regulatory approval on Thursday for 1.8 billion euros in rescue capital granted by the Cypriot authorities to ensure its financial stability.

The European Commission said it was giving approval for the scheme for a period of six months, but that Cyprus would need to present a restructuring plan for the bank during that time.

“The Commission found the measure to be in line with EU state aid rules because it is limited to the minimum necessary and provides safeguards to minimise distortions of competition,” the executive Commission, which acts as state aid regulator in the European Union, said in a statement.

Cyprus became a majority shareholder in the bank through underwriting a share issue earlier this year.

Reuters