German bank HRE returns all state guarantees

23rd March 2011, Comments 0 comments

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

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