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EC and BayernLB agree on revised restructuring plan

By  |  July 10, 2012

The European Commission has approved BayernLB’s revised restructuring plan. BayernLB is Germany’s second-largest public sector bank, and is the nation’s eighth-largest financial institution. It is 94 percent owned by Bavaria.

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    Bavaria had granted a 10 billion euro capital injection after the 2008 downturn. The Commission raised concerns of illegal state aid, finding that BayernLB was not contributing enough and that the sale of the bank’s mortgage unit should reflect market prices.

    The revised plan calls for BayernLB repaying 5 billion euros by 2019 and further divestitures.

    Full content: Reuters

     

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