Germany's finance minister Peer Steinbrück is considering nationalising Hypo Real Estate Holding, the Munich-based commercial property lender which has been bailed out twice by the government over the past four months, several German media reported on Wednesday. According to reports, the German state is considering buying a 70% stake in the troubled bank, but a final decision has yet to be made.
Germany's finance minister Peer Steinbrück is considering nationalising Hypo Real Estate Holding, the Munich-based commercial property lender which has been bailed out twice by the government over the past four months, several German media reported on Wednesday. According to reports, the German state is considering buying a 70% stake in the troubled bank, but a final decision has yet to be made.
The government has injected EUR 50 bn in the German lender since October and guaranteed another EUR 42 bn of Hypo's debts due to be repaid d by April 15. But Hypo already warned it might need another few billions of euros to shore up its finances. 'Negotiations between Hypo Real Estate and [state stabilisation fund] SoFFin regarding more extensive and longer-term liquidity and capital support measures for the group have not yet been finalised', the bank said last week.
