Brussels, 20/08/2009 (Agence Europe) - On 17 August, the European Commission authorised guarantees of a maximum total of 7 billion euros for the German bank IKB. This bank already received State aid last year (EUROPE 9766 and 9810), but additional measures were felt to be necessary. The Commission was able to take a positive decision thanks to the commitment of the German authorities to provide a revised restructuring plan within three months. The initiative comes within the framework of the Commission's strategy to support the provision of credit and liquidity to the so-called "real" economy, whilst at the same time demanding restructurings of financial institutions where necessary. "This additional support was only allowed in order to counter a threat to financial stability stemming from a potential illiquidity of IKB", the Commission stated in a press release issued on the same day.
IKB is a medium-sized private German bank with a business focus on mid-sized companies. The measure approved on Monday concerned guarantees for liabilities of up to 7 billion euros granted by SoFFin, a fond administrating the German support scheme for financial institutions. The plan for additional aid was put to a strict examination by the Commission, which wished to verify that the amount was limited to the absolute necessary, and that the company would not be in a position to derive a competitive benefit from the aid. (C.D./trans.fl)