BRUSSELS, Dec 5 (Reuters) - EU competition enforcers on Thursday approved a 3.6-billion-euro ($3.97 billion) rescue plan for ailing German lender NordLB, saying the recapitalisation plan did not involve any state aid.
“The European Commission has found Germany’s plans to strengthen the capital position of state-owned Norddeutsche Landesbank – Girozentrale (NordLB) to be free of any state aid,” the EU executive said in a statement, confirming a Reuters report on Nov. 11.
NordLB is struggling under billions of euros of losses from non-performing shipping loans. The regional governments of Lower Saxony and Saxony-Anhalt will provide 1.7 billion euros while some 1.1 billion euros will come from German saving banks.
Lower Saxony is also guaranteeing some loans which brings NordLB further capital relief of 800 million euros. (Reporting by Foo Yun Chee and Robin Emmott;)