Germany denies considering tougher line on banks
Germany's finance ministry denied on Monday it was considering forcing the country's banks to accept public aid and partially nationalising them to jumpstart lending to cash-strapped firms.
The Sueddeutsche Zeitung daily had reported that Berlin was mulling such a move because of fears of a credit crunch in Europe's biggest economy later in the year.
The newspaper said that in exchange, the government was considering taking stakes in the banks along the lines of the partial nationalisations that have taken place in the United States and Britain.
"The federal government is not thinking about forced capitalisations," the finance ministry said in an emailed statement.
It added that with its 480-billion-euro (685-billion-dollar) banking rescue package rushed through parliament and the recent "bad bank" law, the state "offers banks a comprehensive range of stabilisation measures.”
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