April 25 (Bloomberg) -- Vestjysk Bank A/S and Aarhus Lokalbank A/S won temporary European Union approval for rescue aid from the Danish government.
The European Commission authorized the aid to the banks, which agreed to merge in January, to address funding challenges and help them meet new capital requirements. Denmark must submit a restructuring plan within six months for the EU to grant final approval for the financial help, regulators said in an e-mailed statement today.
Vestjysk Bank, based in Lemvig, Denmark, will convert state-held hybrid capital of about 297 million kroner ($52 million), giving the state a majority holding, it said in January.
To contact the reporter on this story: Aoife White in Brussels at firstname.lastname@example.org.
To contact the editor responsible for this story: Anthony Aarons at email@example.com.