The German bank IKB is to receive a further €7 billion in aid, in the form of guarantees for liabilities from SoFFin, a fund administrating the German support scheme for financial institutions. The additional support has become necessary to ensure the bank's continued liquidity. The European Commission gave its approval after Germany agreed to provide a revised restructuring plan within three months. IKB already received similar help; they were the first German bank to seek assistance to off-set the impact of bad investments in structured securities in 2007. Before permitting further aid, the Commission reviewed IKB's funding requirements for the next six months to verify that the amount of aid is restricted to what is required. IKB is also prohibited using proprietary trading as a means to inflate profits with taxpayer's money.
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IKB to receive further support to keep it afloat
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