Press Release: State aid: Commission approves restructuring of German bank IKB

The European Commission approved, under EC Treaty state aid rules, a €9 billion restructuring package, for German bank IKB. After financial difficulties arising from the US-subprime crisis in July 2007, IKB was granted two risk shields, capital injections and liquidity facilities. In the context of the restructuring, the bank was sold to the US investment fund Lone Star in August 2008. Following an in-depth investigation, launched in February 2008, the Commission concluded that the measures were compatible with EU rules on state aid to companies in difficulties. The package will allow for the restructuring of the bank, while the significant scaling back of IKB's activities will limit the distortion of competition created by the state support.