Brussels, 07/10/2009 (Agence Europe) - On Wednesday 7 October, the European Commission authorised a temporary increase of the guarantee for a portfolio of securities of German Landesbank WestLB. The aid measure amounts to €6.4 billion and is provided by SoFFin, a fund administrating the German support scheme for financial institutions. WestLB is currently in the process of implementing a restructuring plan that was approved by the Commission in May 2009. The plan foresees, among other measures, the creation of a “bad bank” which will ensure that the bank can return to viability. The Commission considers the temporary aid, endorsed on Wednesday, is in line with the Commission's communication on state aid to banks during the crisis, as it is necessary for the creation of the “bad bank”. The additional aid became necessary when a delay in the implementation of the bad bank solution and increasing capital requirements for a previously hedged portfolio of structured securities led to a breach of regulatory capital requirements. (C.D./transl.jl)