Brussels, 05/12/2012 (Agence Europe) - On 5 December the European Commission temporarily approved an emergency recapitalisation totalling €1.5 billion that Austria intends to grant to Hypo Group Alpe Adria (HGAA). The bank needs the aid to comply with regulatory equity ratios before the 31 December 2012 deadline set by the country's financial watchdog. Austria intends to (i) proceed with a capital increase of €500 million in the form of shares; and (ii) grant a state guarantee on subordinated Tier-2 capital instruments with a nominal value of €1 billion. HGAA was nationalised in 2009 and the aid has been authorised in order to ensure financial stability because the bank is the sixth largest in Austria. The authorisation of the aid is linked to the submission of an updated restructuring plan within the next two months. Since December 2008, HGAA has received several batches of state aid (see EUROPE 9900 and 10147). (FG/transl.fl)