Germany's bank rescue fund has granted Hypo Real Estate's request for a EUR 15 bn short-term liquidity facility pending the provision of a EUR 50 bn lifeline from a public-private consortium of the German government and German financial institutions.
Germany's bank rescue fund has granted Hypo Real Estate's request for a EUR 15 bn short-term liquidity facility pending the provision of a EUR 50 bn lifeline from a public-private consortium of the German government and German financial institutions.
The Financial Markets Stabilisation Fund informed troubled Hypo Real Estate Group on Thursday that it will guarantee a bank bond which Hypo can pledge to draw on a special EUR 15 bn liquidity support facility from Deutsche Bundesbank.
Hypo said the guarantee has a short-term maturity and it is planned to refinance the liquidity provided with the EUR 50 bn facility to be provided by the public-private consortium, Deutsche Bundesbank, and the German Ministry of Finance.
The real estate lender has also reached agreement with the financing consortium on a key element of the EUR 50 bn facility. 'It is envisaged to provide the full extent of liquidity facilities by mid-November,' Hypo said.
