Bloomberg News

NordLB May Get EU Approval for State Aid This Month, EU Says

July 05, 2012

Norddeutsche Landesbank Girozentrale, a state-owned German lender, may receive European Union approval later this month for government help after bank and regional representatives met with the regulators today.

NordLB Chief Executive Officer Gunter Dunkel and David McAllister, premier of the German state of Lower Saxony, met with EU Competition Commissioner Joaquin Almunia to discuss the aid, according to a statement by the bank.

The European Commission and NordLB “reached an agreement in principle on the restructuring” of the bank and regulators plan to issue a decision on July 25, Antoine Colombani, a spokesman for the commission, said in an e-mail.

NordLB received authorization from the commission in December for a 1.67 billion-euro ($2 billion) government recapitalization to help it meet capital rules set by the European Banking Authority. EU regulators must examine large state payments to lenders that needed help during the financial crisis and have required banks to shrink balance sheets and change how they do business to compensate for any harm to competition.

Colombani didn’t give details of the bank’s restructuring plan.

To contact the reporter on this story: Aoife White in Brussels at awhite62@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net


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