Press Release: State aid: Commission approves restructuring aid to BayernLB subject to repayment of €5 billion of aid

The European Commission has approved under EU state aid rules restructuring aid for the German bank BayernLB in the form of a capital injection of €10 billion, a risk shield of € 4.8 billion and liquidity guarantees based on commitments presented by Germany to fundamentally restructure the bank and on condition that BayernLB repays €5 billion of state aid in the next seven years.

The Commission concluded that the restructuring plan would enable the bank to become viable without continued state support and provided for a sufficient contribution by the bank's owners to the cost of restructuring, while minimising distortions of competition.