German bank HRE returns all state guarantees
Nationalised German bank Hypo Real Estate (HRE) has returned all public guarantees afforded it by the government, it said Wednesday in a statement.
HRE returned the last 15 billion euros ($21.5 billion) in guarantees out of a total of 124 billion euros this week, the statement said.
The troubled property lender and municipal finance specialist used the guarantees as it set up a so-called 'bad bank' which holds the risky assets it amassed leading up to the global financial crisis in 2008.
HRE was nationalised in 2009 to avoid a catastrophic bankruptcy the government said would have threatened the entire German banking sector.
Berlin also injected 10 billion euros directly into the bank.
© 2011 AFP