The European Commission (EC) approved on Wednesday the restructuring plan for the Dutch bank ING. including an illiquid asset back-up facility provided by the Dutch State to ING banking and financial services group.

The approval of the facility comes after an additional agreement was signed between the Dutch State and ING, which received substantial state bailouts after being struck by the financial meltdown last year.

"I am satisfied that the Dutch authorities have adapted the terms of the illiquid asset back-up facility via an additional agreement to bring them into line with EU state aid rules," Said Competition Commissioner Neelie Kroes.

The notified restructuring plan forsees that ING will pay a significant proportion of the restructuring costs, ING's long term commercial viability will be restored, and that the aid will not lead to undue distortions of competition.

"The restructuring plan is adequate to restore ING's viability. ING is financing a significant share of the restructuring costs and distortions of competition caused by the aid measures are sufficiently addressed," the commissioner added.

The EU's executive arm ruled that the proposed restructuring measures were "compatible with the EU rules on state aid to remedy a serious disturbance in a member state's economy."