Commission approves state support for IKB

23 December 2008

The Commission approved the support guarantee to IKB to cover the bank's medium-term refinancing needs. The support aims to ensure that IKB's restructuring is not impeded by insufficient liquidity.

The Commission approved the support guarantee Germany is granting to IKB to cover the bank's medium-term refinancing needs. The support aims to ensure that IKB's restructuring is not impeded by insufficient liquidity.

 

Due to the current financial crisis, IKB experienced difficulties concerning its refinancing capabilities. The German authorities therefore intend to grant a guarantee of at most 5 billion euros on IKB's newly issued debt. Germany will receive a market-orientated remuneration in accordance with the recommendations of the European Central Bank.

 

Press release

 

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