MUNICH, Oct 10 (Reuters) - 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.
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.
($1=.6782 Euro) Keywords: BAYERNLB/AID (Reporting by Peter Maushagen; writing by Edward Taylor; Editing by Andy Bruce; Reuters Messaging: edward.taylor.reuters.com@reuters.net; +49 69 7565 1187) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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.
($1=.6782 Euro) Keywords: BAYERNLB/AID (Reporting by Peter Maushagen; writing by Edward Taylor; Editing by Andy Bruce; Reuters Messaging: edward.taylor.reuters.com@reuters.net; +49 69 7565 1187) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
