FRANKFURT, Oct 13 (Reuters) - Germany's bank rescue plan provides a 'solid foundation' for stabilising the country's financial sector and will encourage banks to lend to each other again, Bundesbank President Axel Weber said on Monday.
'The banks can now lend each other money again with greater confidence, because the state is securing the institutes and their business via capital measures and guarantees,' the head of the German central bank said in a statement.
According to sources in the ruling coalition, the German cabinet approved a rescue package worth up to 500 billion euros ($679.3 billion) on Monday, taking a sector-wide approach after less comprehensive steps failed to calm markets.
(Writing by Dave Graham) Keywords: FINANCIAL/GERMANY WEBER tf.TFN-Europe_newsdesk@thomsonreuters.com cmr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'The banks can now lend each other money again with greater confidence, because the state is securing the institutes and their business via capital measures and guarantees,' the head of the German central bank said in a statement.
According to sources in the ruling coalition, the German cabinet approved a rescue package worth up to 500 billion euros ($679.3 billion) on Monday, taking a sector-wide approach after less comprehensive steps failed to calm markets.
(Writing by Dave Graham) Keywords: FINANCIAL/GERMANY WEBER tf.TFN-Europe_newsdesk@thomsonreuters.com cmr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
