BayernLB aims to return 10 billion euros in aid -source

10 October 2009 @ 04:40 pm EDT

German Landesbank Bayern LB needs less state aid and is negotiating with the bank rescue fund SoFFin about returning 10 billion euros, a source close to the company said on Saturday.

CEO of German BayernLB Michael Kemmer listens to journalists questions during the company's annual news conference in Munich, March 21, 2009. After positive results in all parts of business in January and February 2009, BayernLB expects noticeable improvement in the operating result in 2009. The fiscal year of 2008 ended with a net loss of 5.08 billion euros versus a net profit of 92 million euros in 2007.

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At the end of 2008, SoFFin had granted 15 billion euros in guarantees for the bank, of which 5 billion euros was used by BayernLB.

Since BayernLB was able to raise 1 billion euros on the capital markets at the beginning of the month, market confidence has returned to the bank, the source at the bank said.

Reports about BayernLB returning 10 billion in aid first appeared in an advance copy of German daily Sueddeutsche Zeitung.

BayernLB aims to return 10 billion euros in aid -source

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