German banks, insurers chip in 8b euros for Greece
BERLIN, May 7 — Germany’s financial sector will contribute 8.1 billion euros (RM34.8 billion) over three years to round out a 110 billion euro bailout of Greece, the German Finance Ministry said today.
The deal for a private-sector contribution from German financial institutions which include Deutsche Bank insurer Allianz and Munich RE comes as the German lower house of Parliament approved a law to free up taxpayer funds for a Greek rescue.
In a statement, the Finance Ministry said German banks and insurers had agreed to maintain existing credit lines to Greece and its financial institutions until May 2013 as well as to roll over 3.3 billion euros in credit lines which are set to expire.
In a parallel step, German institutions agreed to provide the Greek state with up to 4.8 billion euros for bonds or other forms of finance to replace bonds which are set to come due by May 6, 2013.
The European Union and the International Monetary Fund agreed last week to fund a rescue package for Greece after Athens committed itself to years of painful austerity. — Reuters