BRUSSELS, Oct 4 (Reuters) - EU competition regulators approved on Thursday a 220-million-euro ($283.83 million) capital injection for Hypo Tirol Bank after the state-owned lender agreed to scale down its operations and cut its balance sheet as part of a revamp.
The Austrian province of Tyrol announced the capital injection in December last year to help the bank absorb losses on bad loans and boost its core capital ratio.
The European Commission said the overhaul will ensure the bank's viability. Hypo Tirol will withdraw from the German, Italian and Swiss markets. It will also limit its activities to certain types of loans and only do new business above a certain profitability level.
The bank wil also pay dividends to its owner once it reaches an adequate core tier 1 ratio. ($1 = 0.7751 euros)
(Reporting by Foo Yun Chee, editing by Claire Davenport)
Keywords: EU HYPOTIROL/