Germany to sell Commerzbank stake in three years: minister

2nd August 2010, Comments 0 comments

Germany hopes to sells its multi-billion-euro (dollar) stake in Commerzbank "within three years at the latest," Economy Minister Rainer Bruederle said on Monday.

Until now, Berlin had not said when it might try to recuperate the billions of euros injected last year into the country's second-biggest bank to keep it from collapsing amid a financial sector crisis.

Commerzbank soaked up 18.2 billion euros (23.7 billion dollars) in public funds as it struggled to integrate loss-making Dresdner Bank, leaving Berlin with a stake of more than 25 percent.

"Nothing is worse than a state holding in banks. It must remain an absolute exception," Bruederle told business daily Handelsblatt.

To pay back the public money, Commerbank might make a capital increase this year if the market is stable, unidentified banking sources cited by the daily said.

The bank is to release second-quarter results on Thursday.

© 2010 AFP

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