Journal (english)
With In Depth
Großansicht des Bildes mit der Bildunterschrift:
IN DEPTH:
Finance Crisis: What can Governments do?
After long discussions, the government and German banks have come up with a rescue package for Hypo Real Estate. But the government has also made it clear that state intervention cannot be without limits - and that guarantees will only be granted up to a certain level.
Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: It came as a shock to German politicians to learn that Hypo Real Estate was in need of more cash than previously thought. The government was determined to save the financial institution, as bankruptcy would have led to a serious crisis in the German banking sector. Now Chancellor Angela Merkel has forged a deal with other German banks to provide a rescue package. The government is not raising its earlier credit guarantee - as the extra loans will now come from the banks. Anything else would likely have been difficult to justify to tax-payers.
Share this article
