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German lender BayernLB pays back final tranche of state aid
June 21, 2017 / 7:16 AM / 6 months ago

German lender BayernLB pays back final tranche of state aid

MUNICH, June 21 (Reuters) - German state-backed lender BayernLB has repaid a final 1 billion euro ($1.1 bln) tranche of bailout funds to Bavaria, the finance minister of the German federal state said.

The repayment means that state-aid proceedings, which were meant to run until 2019, can be completed ahead of schedule, Markus Soeder said in a statement on Wednesday.

In the financial crisis, Bavaria injected 10 billion euros in capital into the lender and gave it 4.8 billion in guarantees for a portfolio of complex securities that turned sour after the collapse of Lehman Brothers.

At the time, BayernLB agreed to repay 5 billion by 2019, while 5 billion euros would remain in the bank as part of Bavaria’s 75 percent stake in the lender. Local savings banks own the rest.

$1 = 0.8982 euros Reporting by Joern Poltz; Writing by Arno Schuetze; Editing by Tom Sims

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