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Commerzbank to repay state aid by June

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Commerzbank to repay state aid by June

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Commerzbank has unveiled a plan to repay the majority of state aid it received during the financial crisis by June.

It intends to return 14.3 billion euros of the 16.2 billion euros that was injected into Germany’s second biggest lender by the Berlin government.

It will raise the money with the sale of new shares and other financial instruments.

Once it starts paying interest on the bailout money, Commerzbank will no longer be subject to pay limits imposed on top bankers.

Chief Executive Martin Blessing had said earlier this year that Commerzbank was planning to repay a sum running into the billions this year, while maintaining a “healthy” equity ratio.