HRE obtained rescue aid in the form of a state guarantee of €35 billion. Germany has notified a prolongation of the guarantee together with accompanying measures for HRE.
The Commission opened an in-depth investigation into state support measures for German bank Hypo Real Estate. HRE obtained rescue aid in the form of a state guarantee of €35 billion. Germany has notified a prolongation of the guarantee together with accompanying measures for HRE.
On 2 October 2008, the Commission approved rescue aid in form of a €35 billion state guarantee for two liquidity lines in line with the EU rules on rescue aid. In addition, HRE has received state aid in the form of guarantees amounting to €52 billion provided by the SoFFin under a German banking rescue scheme.
Germany notified on 1 April 2009 a restructuring plan for HRE. This notification temporarily extends the legality of the €35 billion state guarantee until the Commission has finalised its assessment. The detailed investigation will evaluate whether the planned measures are capable of restoring the long-term viability of the bank, whether state support is limited to the minimum necessary, and whether measures should be put in place to minimise potential distortions of competition created by the aid.
The investigation will also cover the acquisition of 20 million newly-issued HRE shares by SoFFin on 30 March 2009 and the prolongation of the €52 billion guarantees granted under the German banking rescue scheme. It might possibly include an additional capital injection by SoFFin.
The opening of a formal investigation procedure does not prejudge whether the measures concerned are in line with the EU State aid rules. It
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