Commission approves additional aid for IKB
18 August 2009
The Commission approved EUR 7 billion to the German bank IKB. The bank will have to provide a revised restructuring plan within three months.
The European Commission has approved, under EC Treaty state aid rules, guarantees amounting to up to EUR 7 billion to the German bank IKB, a bank that received aid in the past, in the context of the financial crisis. Additional support has become necessary to protect IKB's liquidity and financial stability in Germany. After obtaining a commitment from Germany to provide a revised restructuring plan within three months, the Commission considers the measure to be compatible.
Competition Commissioner Neelie Kroes said: "Today's decision on IKB proves again that we contribute to financial stability when applying state aid rules. This aid would grant liquidity to the bank for the coming months, allowing it to sustain lending to the real economy. The German authorities committed themselves to notify a revised restructuring plan, taking into account the changes in the economic climate, which the Commission will assess carefully and swiftly."
© European Commission
