BERLIN (MNI) – The German state-owned lender Hypo Real Estate (HRE)
will return to the government some E23.5 billion of loan guarantees in
the next few days, driving down the total volume of guarantees to around
E124 billion, German business daily Handelsblatt reported Tuesday citing
unnamed sources.
Having now moved some E173 billion worth of risky and non-strategic
assets to the newly founded clearing institute FMS Wertmanagement
(FMSW), the HRE no longer needs all of its loan guarantees, the
newspaper wrote.
Last month, the government’s Financial Market Stabilization Fund
(Soffin) increased the volume of guarantees for HRE temporarily by about
E40 billion in order to prevent a liquidity squeeze when HRE moved its
assets to the FMSW.
–Berlin bureau: +49-30-22620580; email: twidder@marketnews.com
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