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Bo Lundgren - vår nye hjälte
Germany’s government is finalising “bad bank” plans to deal with toxic financial assets
Peer Steinbrück, finance minister, is expected to reveal by the end of April how he intends to help German banks separate unwanted or heavily impaired assets from their balance sheets, thereby freeing up capital and cutting the risk of further writedowns.
The ministry declined to comment on German press reports that €200bn ($262bn) in guarantees would be made available to banks.
The success of the Irish government’s plans to set up a “bad bank” rests on details that have not yet been finalised.
The government’s plan is to remove all land and property development loans from the banks’ balance sheets and replace them with government bonds
The loans have a nominal value of €80bn-€90bn – about half of Ireland’s annual economic output. However, the government plans to buy them at much lower prices.
Celtic Tiger is an endangered species