German state bank, Receiving USD12 Billion

Reporting Frankfurt - A German state bank, 'Hypo Real Estate' has received funding amounting to 10 billion euros (USD12 billion). as a general credit guarantees because of the tensions in financial markets.

"This decision was made to suppress the existence of additional collateral provided by the German financial market stabilization fund, SoFFin, which was taken because the current situation in financial markets," the statement SoFFin, as reported by the AFP on Saturday 29 May 2010.

The parties 'Hypo RE' can now attract a total budget amounting to 103.5 billion euros in state guarantees inter-bank market to obtain financing at reasonable rates.

SoFFin, is a specialist property financing credit channel, and provides a complex restructuring program is a failure and will have major consequences for the German economy, "said President SoFFin Hannes Rehm.
'Hypo RE' hit by losses on the purchase of bonds issued by countries 'eurozone' problems such as Greece, Ireland, Italy, Portugal, and Spain. In late March, the bank has around 39 billion euros in debt exposure.
In addition, 'Hypo RE' has also received a capital injection amounting to 7.85 billion euros from SoFFin. In the past year, the bank paid the amount of seven billion euros of approximately 50 billion euros from private bank loans. (Otofinanceinfo)