Brussels, 04/06/2008 (Agence Europe) - On Wednesday 4 June, the European Commission concluded that a liquidity facility and a state guarantee for German bank Sachsen LB, granted under the terms of the sale of Sachsen LB to Landesbank Baden-Württemberg (LBBW), were compatible with EC Treaty state aid rules. Speaking to press on Wednesday, the spokesman for the competition commissioner said that the €17.1 billion credit provided between 19 August 2007 and 19 February 2008 was indeed state aid, but complied with the relevant Community rules. The in-depth investigation launched in February 2008 (see EUROPE 9611) concluded that the aid was liquidity support and limited to 6 months. The Commission also carefully examined the €2.75 billion state guarantee, provided by Berlin, which allowed Sachsen LB to be sold to Landesbank Baden Württemberg. The guarantee was allowed because it met the criteria for restructuring aid, i.e. the aid must restore the long-term viability of the company in difficulty; the state support must be limited to the minimum necessary; and potential distortions of competition created by the aid must be minimised with compensatory measures. (C.D.)