Brussels approves German bailout for Hypo Real Estate
BRUSSELS: The European Commission has approved the German bailout package for property lender Hypo Real Estate, praising the action as “part of the solution” during the current financial crisis. On Monday, the German government and private banks unveiled a rescue plan for Hypo Real Estate, the future of which nonetheless remains uncertain. Berlin is to guarantee a large part of a 35-billion-euro credit line drawn up to keep Hypo Real Estate in business. The EU’s executive arm concluded that, “the measures comply with EU rules on rescue aid”. This case “demonstrates that state aid control is not part of the problem but part of the solution for ensuring that measures designed for financial stability can be implemented with legal certainty,” said EU Competition Commissioner Neelie Kroes in a statement released late Thursday. afp
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