Brussels, 23/10/2009 (Agence Europe) - On Friday 23 October, the European Commission opened an in-depth investigation into the risk shield and the recapitalisation provided by two German Länder to HSH Nordbank AG. The aid was approved in May of this year: the Commission will now scrutinise the implementation arrangements, particularly in the light of the restructuring plan that was submitted to it in September.
The €10 billion risk shield and the €3 billion recapitalisation provided by the Länder of Hamburg and Schleswig-Holstein were approved by the Commission for six months on 29 May 2009. The Commission will now analyse the implementation of the aid. In a press release published on Friday, it said it “has doubts … as regards the eligibility and valuation of assets covered by the risk shield and remuneration of the Länder for the risk shield provided”. The Commission has also declared its intention to check whether the measures are likely to restore the long-term viability of the bank. The press release states, however, that “the opening of an investigation is not unusual” in this type of case. Dialogue with the German authorities was continuing, Competition Commissioner Neelie Kroes said indicating that she was “confident that we will arrive at a satisfactory outcome”. (C.D./transl.rt)