November 23, 2012 / 3:20 PM / in 5 years

UPDATE 1-BayernLB repays 350 mln euros of state bailout

* First 350 mln euros repaid on Friday

* Another repayment to follow next year

* BayernLB has to return 5 bln euros in total by 2019 (Recasts with official comments, adds details)

MUNICH, Nov 23 (Reuters) - German state-owned bank BayernLB has repaid 350 million euros ($451 million) of state funds, part of the 5 billion euros it has agreed to repay by 2019.

BayernLB Chief Executive Gerd Haeusler told reporters on Friday the bank planned to make another repayment next year.

In July, BayernLB agreed to repay 5 billion euros ($6.4 billion) in state aid by 2019 and halve the size of its balance sheet to win European Union approval for its bailout after the financial crisis.

“That is very ambitious, but doable,” Haeusler said.

BayernLB ran into trouble in 2008 after risky investments turned sour in the crisis. The state of Bavaria injected 10 billion euros in fresh capital at the time, boosting its holding to 94 percent. ($1 = 0.7761 euros) (Reporting by Jens Hack; Writing by Maria Sheahan, Harro ten Wolde; Editing by Mark Potter and Jane Merriman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below