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Germany's HRE bank gets 3.0 bln euro in new capital

New captial injection comes from government, which already owns the bank. -AFP

Thu, Nov 05, 2009
AFP

FRANKFURT, GERMANY (AFP) - Germany's troubled property lender Hypo Real Estate announced Wednesday that it has received a new three-billion-euro ($6.2 billion) capital injection from the government.

The government already holds 100 percent of the bank's capital since October when it provided 3.3 billion euros.

The state has given 100 billion euros in guarantees to help HRE refinance, with the assistance of private banks.

In the latest aid, the federal fund helping the banking sector, Soffin, will give 700 million euros to boost HRE Holding's reserves, 1.3 billion euros for its mortage credit unit Deutsche Pfandbriefbank, and 1.0 billion euros in hybrid capital, the bank said in a statement.

 
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