FRANKFURT (Thomson Financial) - Germany's savings banks association is providing guarantees of more than 300 mln eur to IKB Deutsche Industriebank AG, association president Heinrich Haasis told Focus magazine.
'The Savings Banks Group and the Volksbanken have jointly provided guarantees of around 500 mln eur,' he said, adding that two-third of this amount come from the savings banks.
The savings banks association is part of a bank pool led by state-owned Kreditanstalt fuer Wiederaufbau (KfW) which previously bailed out IKB to the tune of 8.1 bln eur to cover obligations in relation to funds exposed to US subprime mortage market. marilyn.gerlach@thomson.com mog/hjp COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.