Banks and insurers could lend Greece €1 billion

Deutsche Bank and insurers Allianz and Munich Re could lend Greece €1 billion ($1.3 billion) on the same terms as a EU-IMF bailout package, the Financial Times Deutschland reported on Monday.

Banks and insurers could lend Greece €1 billion
Deutsche's Ackermann heading for the extinguisher? Photo: DPA

“Deutsche Bank could provide a loan of €500 million on the same conditions as those set by the federal government, Allianz a loan of more than €300 million and Munich Re more than €200 million,” the newspaper said without naming its source.

Eurozone finance ministers approved Sunday a €110-billion loan package for Greece, to be extended over three years by the bloc and the International Monetary Fund.

German Finance Minister Wolfgang Schäuble reportedly met German bank directors over the weekend to get them to contribute to the Greek financial rescue plan.

The business newspaper Handelsblatt quoted sources close to the government as saying Schäuble wanted “a voluntary commitment” from the banks to buy Greek debt as a “stabilisation measure” aimed at volatile financial markets. Such a move would also help soothe German public opinion, which is currently opposed to helping Athens out of its fiscal jam.

The FTD said Deutsche Bank chief Josef Ackermann was first to respond to the state’s request and that he convinced insurance giant Allianz and the reinsurer Munich Re to follow suit.

Berlin had been reluctant to approve an unpopular rescue plan ahead of a key regional election this month. But a poll released Friday found that 53 percent of Germans would accept a Greek rescue if the banks took part.

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Deutsche Bank set ‘to cut ties with Trump’

Deutsche Bank will cease its longstanding relationship with outgoing US president Donald Trump, The New York Times reported on Tuesday.

Deutsche Bank set 'to cut ties with Trump'
Deutsche Bank's headquarters in Frankfurt. Photo: DPA

Deutsche Bank was Trump's primary lender for two decades, and he owes the institution more than $300 million, according to the newspaper, which cited an unnamed source as saying the German lender “has decided not to do business with Mr. Trump or his company in the future.”

Deutsche Bank declined to comment to AFP.

The move comes on the heels of last week's violent attack on the US Capitol by Trump supporters at the president's incitement, and follows steps taken by other companies to cut ties with Trump and his businesses.

READ ALSO: Trump under investigation for Deutsche Bank ties

Christiana Riley, head of Deutsche Bank's US division, called the violent
siege on the Capital “a dark day for America and our democracy” in a post on LinkedIn last week.

“We are proud of our Constitution and stand by those who seek to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place,” Riley said.

“It is my hope that these shocking events will result in a reinvigoration
of the principles our nation was built upon.”

Trump's relationship with Deutsche Bank has sparked numerous probes in the United States, including in New York, where the Manhattan District Attorney is investigating whether Trump committed financial crimes as he sought loans.

READ ALSO: 'Worlds between us': What Trump's German family's town thinks of him today