Berlin allowed to provide Hypo Real Estate more government guarantees up to 40 billion euros

The European Commission has previously allowed the German government to provide investment bank Hypo Real Estate additional government guarantees worth 40 billion euros. The Commission considered that such a measure is consistent with the requirements of the EU. In addition, Brussels authorized the deployment of "toxic" securities Hypo Real Estate worth about 191 billion euros in the so-called "bad bank", reports Deutsche Welle referring to the German media. Earlier, Hypo Real Estate received from the state guarantee for 103.5 billion euros, as well as the capital of $ 7.7 billion

Meanwhile it is reported that European Commission's decision is not final. Currently, experts continue to test the concept of restructuring of Hypo Real Estate. EU Commissioner Joaquin Almunia competition is skeptical about the chances of the bank's rescue. "I still have doubts about the viability of the bank in the long run," - said the Commissioner.

Recall, Hypo Real Estate was among the seven banks that do not cope with the stress tests by the European Committee for Banking Regulation (CEBS). The audit analyzed the financial prospects of companies in the context of global economic turmoil.