22/12/2008 (Agence Europe) - On 18 December, the European Commission authorised measures proposed by the German Land of Bavaria to help the regional bank BayernLB. The Commission noted that the conditions for this authorisation have been met: the financial health of the bank is vital for the smooth functioning of the economy of the Land; and the proposed support comes with conditions to reduce competition distortions to a minimum. BayernLB will obtain an increase in its capital of 10 billion euros from one of its owners, the Land of Bavaria. The Land also plans to grant a general guarantee of 4.8 billion euros for part of the ABS portfolio (asset-backed securities) owned by BayernLB. Lastly, Germany has to present a preliminary draft restructuring plan for BayernLB within four months. (C.D./trans.fl)