The European Commission has opened under EC Treaty State aid rules an in-depth investigation into State aid measures for German Landesbank BayernLB and its Austrian subsidiary Hypo Group Alpe Adria (HGAA). BayernLB obtained rescue aid in the form of a capital injection of €10 billion and a risk shield of €4.8 billion, endorsed by the Commission on 18 December 2008. HGAA also received a €0.7 billion capital injection from BayernLB. In addition, HGAA received a €0.9 billion capital injection from Austria on the basis of the Austrian banking emergency rescue scheme, approved by the Commission in December 2008. The Commission will evaluate in detail whether the planned measures are capable of restoring the long-term viability of BayernLB and HGAA, whether the state support is limited to the minimum necessary, and whether measures should be put in place to minimise potential distortions of competition created by the aid. The opening of an investigation is common for state interventions of this magnitude and will ensure legal certainty for the companies concerned. It also gives interested parties the possibility to submit their comments. It does not prejudge the outcome of the procedure.
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