Ireland weighs help for Hypo Real unit

FRANKFURT (Reuters) - The Irish government is considering providing liquidity assistance to Hypo Real Estate's Irish unit Depfa Bank, Hypo Real Estate spokesman Hans Obermeier said on Sunday.

A 35 billion euro (27 billion pound) German government-led rescue plan for Hypo Real Estate fell apart on Saturday as German banks and insurers withdrew their support for the bailout but talks were continuing on Sunday to revive the rescue.

Obermeier said the liquidity situation at HRE had worsened over the past week -- especially at Depfa -- because of talk about winding down the lender. The Berlin government has since made clear that no such move was planned.

The spokesman dismissed speculation that HRE could need up to 100 billion euros in liquidity as "absurd" from today's perspective.

(Reporting by Christian Kraemer)