German bank stabilisation fund Soffin has announced that it is to move EUR 191 bn of risky and non-strategic assets from nationalised real estate banking group Hypo Real Estate to a bad bank.
German bank stabilisation fund Soffin has announced that it is to move EUR 191 bn of risky and non-strategic assets from nationalised real estate banking group Hypo Real Estate to a bad bank.
The assets are to be contributed to the bad bank structure, FMS Wertmanagement (FMSW), by end-September. Hypo Group is the holding company of Deutsche Pfandbriefbank.
Earlier this month, Soffin granted a further EUR 40 bn to Hypo in state guarantees to enable it to avoid any 'liquidity shortfalls'. The total maximum of the temporary guarantee facility provided to HRE, now amounts to EUR 142 bn.
