The EU Commission is to approve the bail-out for German lender
IKB Deutsche Industriebank, but informed sources say that the
condition will be the sale or closing down of some of its
activities, including its leasing arm.
Although spokespersons for EU executive have refused to confirm
the conditions required to allow the bail-out, saying that the
discussion will take place in the next days, informed sources say
that IKB Deutsche Industriebank will be required to give up, among
other businesses, its leasing arm.
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This includes the company’s vehicle, IT and vendor leasing
businesses, with subsidiaries in most Eastern European countries,
as well as France and Austria.
The German bank had been close to collapse as the credit crunch
hit, after huge losses from trading and investments in US
mortgages. It had to be saved by the German government with a 10
billion state aid.
According to German daily Boersen-Zeitung, both the German bank
and the federal government are likely to accept the EU Commission’s
conditions.
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