Germany wants ECB to open liquidity window for HRE

Sun Oct 5, 2008 9:43pm BST
 
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BERLIN (Reuters) - German Finance Minister Peer Steinbrueck said on Sunday he was counting on the European Central Bank to open a liquidity window to help troubled German lender Hypo Real Estate HRXG.DE.

"We expect and hope that especially the European Central Bank ... is helpful by opening a security window which further secures the liquidity of this bank," Steinbrueck said in an interview with German broadcaster ZDF.

In a separate interview with ARD television, Steinbrueck said talks in Berlin on a new rescue package for HRE were nearing a solution.

Banks and insurers on Saturday withdrew their support for a government-led 35 billion euro (27 billion pound) rescue deal for HRE after new refinancing problems came to light at the Munich-based lender.

(Reporting by Iain Rogers; editing by Noah Barkin)

 
A dealer works on the trading floor shortly after the U.S. markets opened, at CMC Markets in London October 3, 2008. REUTERS/Toby Melville
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