European Union anti-trust regulators have temporarily approved €18 billion in state aid guarantees for Hypo Real Estate (HRE) to cover its liquidity needs.

The European Commission said yesterday it would take the guarantee into account in its final decision on HRE’s restructuring plan which is linked to the German lender’s state bailout following the financial crisis. HRE is made up of Hypo Real Estate Holding, Deutsche Pfandbriefbank and the Irish Depfa Bank.

“The guarantees are an appropriate means to remedy a serious disturbance in the German economy,” the European Commission said in a statement.

The commission has approved a number of such guarantees. – (Reuters)