The troubled German bank IKB, which was saved from bankruptcy with huge amounts of state aid, has received another €5 billion in public loan guarantees.

The 36-month guarantee is aimed at allowing IKB to obtain financing and has been approved by the European Commission, a statement from the bank said.

IKB, which specialises in loans to small and medium-sized enterprises, said however that it had 'asked for no reapitalisation or assumption by the state of risky assets.'

It requested the loan guarantees within the framework of a German plan worth a total of €480 billion that was established after the US investment bank Lehman Brothers failed in mid-September.

But IKB has been in trouble ever since the US market for sub-prime mortgages collapsed in mid 2007. The German state has injected directly or indirectly more than €7 billion in the bank, which is now owned by the US investment fund Lone Star.