Frankfurt-listed Hypo Real Estate has expressed confidence that the European Commission (EC) will rubber stamp the German government's multi-billion euro support for the ailing property lender. Hypo Real Estate was reacting to the news that the EC has initiated a formal investigation to ascertain whether the government's 'restructuring support' is compatible with EU law on state aid for commercial companies.
Frankfurt-listed Hypo Real Estate has expressed confidence that the European Commission (EC) will rubber stamp the German government's multi-billion euro support for the ailing property lender. Hypo Real Estate was reacting to the news that the EC has initiated a formal investigation to ascertain whether the government's 'restructuring support' is compatible with EU law on state aid for commercial companies.
The bank which is being kept afloat by a EUR 50 bn public-private bailout and billions extra in guarantees from the German bank rescue fund Soffin. The German government, through Soffin, intends to nationalise Hypo Real Estate to push through its restructuring.
In a statement, Hypo Real Estate said: 'The initiation of the formal investigation procedure is normal practice within the framework of complex procedures under state aid law, will be conducted in an open-ended manner and will not make any decision on the substance upfront.' The bank said it was confident of a positive ruling.
The earliest date for such a Commission ruling is expected for October 2009.
Click on the link below to read: Soffin acquires 47% of Hypo and eyes rest
