The Owners of Landesbank Hessen-Thüringen have agreed on an Adaptation of the Silent Participations of the State and submitted an initialled Agreement to the BaFin

Frankfurt am Main (ots) - The owners of Landesbank
Hessen-Thüringen (Helaba) - the State of Hesse, the Free State of
Thuringia and the Savings Banks and Giro Association Hesse-Thuringia
(Sparkassen- und Giroverband Hessen- Thüringen - SGVHT) - over the
last weekend agreed on contractual terms and conditions to safeguard
the equity capital base of Helaba. A corresponding agreement was
initialled yesterday and forwarded to the BaFin. "As stated in April,
we have kept our promise and thus adapt the existing silent
participations held by the State of Hesse to the future supervisory
requirements," stated the Hessian Minister of Finance, Dr. Thomas
Schäfer. His Thuringian counterpart stated that the interests of the
Free State of Thuringia will be safeguarded in full by the
arrangements made: "The particular rights of cooperation and veto
rights of the States which, which result from the Guarantor
Agreement, are maintained; the same applies to the participation
level." The Executive President of the SGVHT, Gerhard Grandke, said:
"The solution that has now been found will strengthen the core
capital of Helaba. We really appreciate this outcome."

In order to comply with the future requirements of banking
supervisory law, the owners of Helaba agreed to adapt in particular
the participation in profit, loss and any liquidation proceeds to the
future requirements of Basel III. Instead of a fixed interest, the
State of Hesse will in future receive a share in the Bank's net
income for the year in the amount of its percentage interest held as
remuneration for its participation. If this is not disbursed - which
is to be decided on anew each year by the Board of Owners, also with
regard to the holders of participations in the ordinary capital - the
State's share is allocated to a reserve.

In accordance with the requirements, the amended Participation
Agreements were forwarded in initialled form to the BaFin on 31
October. The owners are positive that "the arrangement that has been
agreed upon strengthens the Bank and thus creates the prerequisite
for ensuring that Helaba will be able to play a central and material
role also with regard to the further consolidation in the Landesbank
sector."

Hesse's Minister of Finance Schäfer was highly satisfied with the
agreements that have been made: "The fact that the adaptation of our
silent participation will result in a Core Tier 1 Ratio of Helaba of
about 10 %, is a strong and powerful signal after the resolutions
passed by the EU summit on a stronger recapitalisation of the banks.
Helaba is and will remain a credit institution that is healthy to the
core."

Pressekontakt:
Stefan Löwer
E-Mail: presse@hmdf.hessen.de
65185 Wiesbaden, Friedrich-Ebert-Allee 8
www.hmdf.hessen.de
Telefon: (0611) 32-2457
Telefax: (0611) 32-2433