Landesbanks hit by EC ruling


Plans to recapitalise and bolster the finances of the German Landesbanks are in doubt due to an update to the European Commission (EC) ruling on state aid.

According to an EC ruling agreed in October, six Landesbanks were set a deadline to the end of last year to repay €4.3 billion of aid provided to them in the early to mid-1990s by their state owners. The regional owners – either the state or the savings and co-operative banks – would then inject capital to recapitalise the Landesbanks, causing

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