BERLIN (MNI) – The German government has not yet decided whether it
will reactivate the financial market stabilisation law which expired at
the end of last year, a Finance Ministry spokesman said Monday.
“We haven’t made a final decision yet,” ministry spokesman Martin
Kotthaus said at a regular government press conference here.
Under the financial market stabilisation law the government could
support banks without demanding an orderly liquidation of the bank at
the same time.
German private banks have a recapitalisation need of “just above E5
billion,” a senior finance ministry official said last week.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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