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Federal Government expects rapid positive decision to HRE

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2009_03_16_HRE3 BERLIN (Dow Jones) – The Federal Government expects will soon take a positive decision by the EU Commission in the aid process for Hypo Real Estate AG (HRE). (Photo: HRE)

"The federal government is after talking with Mr. Vice President Almunia very confident in the near future to obtain a final and positive decision by the European Commission, the restructuring and continued the HRE", said the Ministry of Finance (BMF) on Friday in Berlin. An early end to the aid process is also in the interest of the Federal Government.
This is "a decisive step for a sustainable restructuring perspective, and thus also for a successful re-privatization of the HRE, BMF spokesperson Jeanette Schwamberger said at the request of Dow Jones Newswires. To support a rapid termination of the aid process, the government was in close and constructive dialogue with the EU Commission. The Federal Government is taking part but not to public speculation, which lead to definitive conclusions, the Commission under the existing aid procedure.
According to a report in the Handelsblatt (Friday edition) HRE on removal of toxic assets and no longer projected to the core business areas has operated with incorrect assessment approaches and to receive unauthorized aid. Relying on government and financial circles, the Journal reported, had not yet been decided where the bank now had to continue to shrink.
HRE recalls that took place in October 2010, the transfer of assets to the bad bank FMS value management with legal requirements at book value. "This is the approach we have revealed of course to the EU Commission," a spokesman told Dow Jones Newswires on request. Furthermore, the nationalized company expects in the first half with the approval of the billion-dollar rescue plan. On possible requirements of the Commission took no position of the speaker. By the European Commission was obtained in the short term opinion.