Press Release: State aid: Commission approves state support for IKB

The European Commission approved, under EC Treaty state aid rules, a guarantee, that Germany granted to IKB to cover the bank's medium-term refinancing needs in the financial crisis. The support aimed to ensure that IKB's restructuring was not impeded by insufficient liquidity. The Commission found the measure appropriate to stabilise the bank, in line with its Guidance Communication on state aid in the financial crisis as well as its rescue and restructuring guidelines. The guarantee was necessary to avoid a serious disturbance in the German economy and to ensure the continuity of IKB's business activities. As it was limited in time and scope to the minimum necessary to restore the financing, requires an adequate fee level and ensures the economic viability of IKB, it was compatible with Article 87.3.b of the EC Treaty.