BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble said
Monday that it was not a surprise that the state-owned lender Hypo Real
Estate (HRE) had been given additional state guarantees to manage the
process of shifting its risky as well as non-strategic assets of some
E210 billion to a clearing institute.
The government’s Financial Market Stabilization Fund (Soffin)
announced on Friday that it had granted the HRE additional loan
guarantees of up to E40 billion through the end of the year.
“This is not dramatic,” Schaeuble told reporters in Berlin. “It was
always clear that the HRE would temporarily have an increased need for
liquidity” when it shifted its assets to the new clearing institute
FMS Wertmanagement, he explained.
The minister said the HRE would begin at the end of the month to
move assets to the clearing institute.
–Berlin bureau: +49-30-22620580; email: twidder@marketnews.com
[TOPICS: M$X$$$,M$G$$$,M$$CR$,MGX$$$]
