• Germany's news in English

German banks agree to help bail out Greece

The Local · 30 Jun 2011, 17:03

Published: 30 Jun 2011 17:03 GMT+02:00

Facebook Twitter Google+ reddit

Schäuble said after a meeting in Berlin with senior representatives from German banks and insurers, that the agreement covered some €3.2 billion ($4.6 billion) in investments in Greek bonds due to expire before 2014.

The exact details, however, remain to be hammered out.

"I am confident that we will have a solution by (a meeting of eurozone finance ministers in Luxembourg) Sunday and then we'll work further on the follow-up to the decisions over the coming weeks," Schäuble said.

"I'm happy that the representatives of the financial sector have said they are ready to participate in a European package for a second aid programme for Greece," he told reporters.

Josef Ackermann, chief executive of Deutsche Bank, said: "We are of the opinion that Greece must be helped ... We are ready to do so."

Ackermann said that the banks, which together hold around €20 billion in Greek assets, chose to follow the outline of a proposed deal with French banks announced by President Nicolas Sarkozy earlier this week.

That arrangement involved French banks agreeing for maturities on some Greek government bonds to be extended by 30 years.

Story continues below…

"But we must still add some modifications," Ackermann cautioned.


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

16:49 July 1, 2011 by nemo999
Of course they will help out given just how many Greek Bonds they are already holding.

It could only be worse if they were french banks, they hold more Greek Debt.

When a bank lends you a small percent of their reserves, they own you. When a bank lends you a large percent of their reserves, you own them. The German Banks are owned.
Today's headlines
These are Germany's top ten universities
The new library of Freiburg University. Photo: Jörgens.mi / Wikimedia Commons

These are the best universities in all of Germany - at least according to one ranking.

Introducing Swabians - 'the Scots of Germany'
Photo: DPA

These Southern Germans have quite a reputation in the rest of the country.

Woman sues dentist over job rejection for headscarf
Photo: DPA

A dentist in Stuttgart is being taken to court by a woman whom he rejected for a job as his assistant on the basis that she wears a Muslim headscarf.

Isis suspect charged with scouting Berlin attack sites
Photo: DPA

German federal prosecutors said Thursday they had brought charges against a 19-year-old Syrian man accused of having scouted targets in Berlin for a potential attack by the Isis terror group.

Berlin Holocaust memorial could not be built now: creator
The Memorial to the Murdered Jews of Europe, in Berlin. Photo: DPA.

The architect of the Berlin Holocaust memorial has said that, if he tried to build the monument again today, it would not be possible due to rising xenophobia and anti-Semitism in Germany and the United States.

'Liberal' Germany stopping Europe's 'slide into barbarism'
Ian Kershaw. Photo: DPA

Europe is not slipping into the same dark tunnel of hate and nationalism that it did in the 1930s - mainly thanks to Germany - one of the continent's leading historians has said.

Eurowings strike to hit 40,000 passengers
Travelers impacted by the strike on Thursday wait at Cologne Bonn airport. Photo: DPA.

The day-long strike by a Eurowings cabin crew union is expected to impact some 40,000 passengers on Thursday as hundreds of flights have been cancelled.

Deutsche Bank reports surprise quarter billion profit
Photo: DPA

Troubled German lender Deutsche Bank reported Thursday a surprise €256-million profit in the third quarter, compared with a loss of more than six billion in the same period last year.

US 'warned Merkel' against Chinese takeover of tech firm
Aixtron HQ. Photo: DPA

The German government withdrew its approval for a Chinese firm to purchase Aixtron, which makes semiconductor equipment, after the US secret services raised security concerns, a German media report said Wednesday.

Long-vanished German car brand joins electric race
Photo: DPA

Cars bearing the stamp of once-defunct manufacturer Borgward will once again roll off an assembly line in north Germany from 2018, the firm said Wednesday.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd