EU approves aid measures for Austrian bank

BRUSSELS, Dec. 22 (Xinhua) -- The European Commission on Tuesday approved a 550 million euro (781.75 million U.S. dollars) capital injection and a 400 million euro (571.5 U.S. dollars) guarantee to an Austrian bank.

Under EU state aid rules, the Commission concluded that the aid measures for BAWAG, one of the largest banking groups in Austria, were "an appropriate means to remedy a serious disturbance in the Austrian economy."

EU Competition Commissioner Neelie Kroes hailed the measures and said "the aid will limit the adverse impact of the current financial crisis on BAWAG and improve the capital base of the bank."

However, Kroes underlined the need for "a revised restructuring plan and a detailed valuation of the guaranteed portfolio for a final assessment of the support measures."