(AFP) – Feb 13, 2008
FRANKFURT (AFP) — The government will lead a fresh rescue package worth 1.5 billion euros (2.3 billion dollars) for troubled German lender IKB, Finance Minister Peer Steinbrueck said Wednesday.
Of the total, the government will contribute 1.0 billion euros, he said.
Speaking after a meeting in Berlin of the supervisory board of the publicly owned KfW bank, which holds 38 percent of IKB, Steinbruck said discussions were underway to determine who would provide the remaining 500 euros.
IKB, a specialist in loans to small- and medium-sized enterprises that has been hurt by the US subprime mortgage meltdown, has already received two emergency packages from the government and the banking sector.
However, these have failed to stabilise the bank and IKB's peers have shown increasing reluctance to put up any further money to bail it out again.
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