German banks gear up to apply for aid from rescue plan

The German Government unveiled on Monday conditions for banks applying for financial support from its 480 billion-euro (645.46-billion dollar) bank rescue package as Berlin considers moves to help boost Europe's biggest economy in the face of an expected sharp global slowdown, reproted dpa.

One of the first German banks to go to Berlin cap in hand is likely to be Bavarian state bank BayernLB, which has been forced to make big writedowns resulting from the financial market turmoil that emerged 15 months ago as result of a meltdown in the risky US mortgage business.

Bavarian Finance Minister Erwin Huber, who heads up BayernLB's administrative board, Monday signalled on Monday that Bavaria accepted the conditions agreed by the Federal Cabinet in Berlin.

Coinciding with the Monday launch of the rescue plan, which is aimed at shoring up Germany's financial sector, the cabinet also agreed to impose a 500,000-euro limit on the executive pay scale of financial houses seeking support under the package.

But the restrictions on pay are to be only imposed in principle, the government said.

Bonus payments are to be made as a result of the state assistance and in general dividends are only to be paid to the authorities overseeing the government's rescue plan, officials said in Berlin.

The government is also planning to exercise influence over the business strategy of financial houses that have been hit by the crisis, which is likely to result in banks steering away from risky investments.

Other German banks are also believed to be considering whether to apply for assistance under the package, which followed the recent dramatic falls on world stock markets and concerns that the global economy to the brink of recession.

Martin Blessing, who heads up Commerzbank AG told the weekly Bild Zeitung Sunday that Germany's second biggest bank would examine the package.

However, Deutsche Bank AG chief Josef Ackermann ruled out Germany's biggest bank applying for assistance also telling the Bild Zeitung that the Frankfurt-based bank was "one of the strongest, best-capitalized banks in the world."

A German government spokesman said Monday that the coalition led by Chancellor Angela Merkel had also called on ministries to present specific proposals for helping to underpin economic growth in the country in the coming months.

In particular, this includes measures such as boosting energy saving programmes in buildings and sales of energy-friendly cars.

However, the chancellor had rejected moves for Berlin to consider drawing up a more general stimulus program linked to the financial crisis.

Under the rescue plan, Merkel's cabinet also decided to impose a 10-billion-euro limit on capital injections to help troubled banks limp through the crisis. Bank risk positions to be taken over are also to be restricted to 5 billion for each bank seeking assistance.

In attempt to demonstrate its crisis management credentials, the German Government pushed the rescue package through parliament in one day on Friday.

The package includes a raft of measures such as state guarantees to help ease the impact on banks of the global credit squeeze and moves to recapitalize financial houses.

As part of the German Government's effort to face up to the financial market crisis, Berlin also announced that the former European Central Bank chief Otmar Issing is to head up a special commission to consider reforms to the international financial system. dpa amc emc

Kazakhstan boosts trade with Poland
Kazakhstan boosts trade with Poland
Kazakhstan unveils its trade structure with EAEU countries for 1Q2021
Kazakhstan unveils its trade structure with EAEU countries for 1Q2021
Retail trade indicators up in Kazakhstan
Retail trade indicators up in Kazakhstan
Loading Bars
Azerbaijani Army's missile, artillery units heading for exercise areas (VIDEO)
Bahar Azadi gold coin price rising in Iran
Khazar consortium opens tender for purchase of office equipment in Turkmenistan
Udi people always feel attention of Azerbaijani president, first lady - head of Albanian-Udi Christian community
Azerbaijan's economy shows positive tendencies in March 2021, says WB
Travel to Saudi Arabia to resume Monday after year of restrictions
Royal Caribbean cancels new cruise line from Israel over unrest
Cargo movements in Iran’s Amirabad port shrink
Ranking of best-selling cars in global market for 1Q2021 announced
Bolivia receives another batch of Russia’s Sputnik V vaccine
Turkmen Communications opens tender for supply of equipment
Iran exporters seek stable foreign currency rate
Azerbaijan discloses date of next plenary parliamentary session
Personnel, military equipment of Azerbaijani Armed Forces sent to exercise area (PHOTO)
First Armenian president reveals reasons for country’s defeat in Karabakh war
Iran’s NIOC, POMC to sign contract on development of Farzad B gas field
Activities in Iran’s Noshahr port intensify
Greece talks latest trade data with Turkmenistan
Azerbaijan shares data on number of vaccinated citizens for May 16
Kazakhstan boosts trade with Poland
Azerbaijan confirms 472 more COVID-19 cases, 1,122 recoveries
Azerbaijani manat's exchange rate remains stable - WB
Kazakhstan unveils its trade structure with EAEU countries for 1Q2021
Greece exploring ways to further diversify bilateral trade with Turkmenistan
Iran's Ministry of ICT to provide free internet for presidential candidates
Iran lifts steel ingots export ban
Azerbaijan, Germany implementing joint agricultural projects
Iran declares amount of loans issued in Fars Province
Detailed look at Turkmenistan's development of agriculture sector (2020 - May 2021)
Tourism potential of Azerbaijan's liberated Shusha at int'l exhibition in Dubai (PHOTO)
Ports and Maritime Organization of Iran seeks tax exemption for Chabahar port
Azerbaijan discloses insurance fee for rice fields
Abu Dhabi shares at record high, shrugging off Israel-Palestine tension
Israel's import of Turkish chemicals spikes in value
SOCAR Ukraine temporarily suspends premium fuel sales
Britain to hold meeting to encourage global COVID vaccine take-up
Azerbaijani agrarian agency signs tender to attract judicial services
Purchasing of rapeseed from farmers in Iran continues
CPI up 0.3% in April, well below expectations
Uzbekneftegaz shares data on shipment of sulfur products
Russia’s COVID-19 spread rate surpasses 1 for eight days in a row
Disney World and other U.S. theme parks update mask rules
Troops of Azerbaijan's Nakhchivan garrison to launch new command-staff exercises
Share of non-performing loans in Georgia doubles
EU allocates financial aid for programs in support of Georgian private sector
Government Trading Corporation of Iran unveils volume of wheat purchased from farmers
Iran's free trade zones require private sector investments - President Rouhani
Volume of cargo loaded, unloaded in Iran’s Anzali port decreases
Azerbaijani parliamentary delegation leaves for visit to Italy
Bitcoin rises 5.6% to $49,337.72
Most temples belonging to Udi people are either in ruined or dilapidated condition. Therefore, we will restore them too - President Aliyev
Iran's launches supercomputer
Proxy advisor ISS recommends votes for Chevron CEO, directors
WB talks growth of lending to Azerbaijan's economy
Saudi Arabia's national airline to resume flights to Georgia
Uzbek commodity exchange notes decrease in prices for cotton seeds
Udi people have great historical heritage - President Aliyev
Georgian FM to pay official visit to Kyiv
Iran’s East Oil & Gas Production Company boosts gas extraction
Biggest share of Azerbaijan's GDP accounts for industry
Turkmenistan interested in expanding co-op with Russia’s Lipetsk region
Azerbaijani Armed Forces continue exercises, moving to operational areas (VIDEO)
Georgia sees increase in COVID-19 cases
Iran reveals COVID-19 data for May 16
Russian airline expanding route of flights in direction of Baku
Azerbaijan expected to approve another int'l document on migration issues
Iran government increases pensions
Retail trade indicators up in Kazakhstan
Physical volume of Kazakhstan’s GDP down in 1Q2021
Turkmenistan, Iran talk over increasing sea transportation in Caspian Sea
Ministry talks social benefits paid out to population in Azerbaijan since early 2021
GDP per capita increases in Azerbaijan
Azerbaijan discloses amount of trade surplus for 1Q2021
Azerbaijan creating industrial clusters to develop metallurgical industry
Facilities to be put into operation at Iran's Ilam Airport
Fitch Ratings shares forecast for Azerbaijan's 2021-2022 external public debt
Baku Higher Oil School hosts webinar ‘Women in Engineering: Challenges and Opportunities’ (PHOTO)
Batumi International Airport of Georgia receives first passenger flight after reconstruction
Azerbaijan's Azerishig to purchase metal structures
Russia reports 8,554 COVID-19 cases over the past day
New type power units at Uzbekistan’s Turakurgan TPP to increase electricity production
UAE airlines Etihad, flydubai cancel Tel Aviv flights
Kazakhstan's int'l reserves grow
Georgia introduces new requirements for registration of trucks, buses, and minibusses
Third oil loading berth for Turkmenistan’s Turkmenbashi oil refinery under construction
Monument to famous Azerbaijani singer to be soon installed in Baku (Exclusive) (PHOTO)
Value of coupon payments to investors in Azerbaijan soars - National Depositary Center
Uzbekistan reveals companies interested in construction of solar power plant in Surkhandarya region
Carbon neutrality in 2045 requires managing increasing quantities of decarbonized biogas
UK to make final lockdown easing decision on June 14
French company eyes to co-op with Uzbekistan in using new technologies in agriculture
Bollywood: Big B buys oxygen concentrators, donates ventilators
Germany to finance implementation of projects in Uzbekistan in several areas
Direct delivery of Uzbek export goods to Pakistan implemented through Afghanistan
Uzbekistan, Tajikistan eye increasing trade turnover
Airport in Uzbekistan opens tender for supply of towbar
Cargo movements in Iran’s Chabahar port down
Uzbek finance ministry becomes sole shareholder of Uzbekistan Railways
Uzbekistan eyes attracting Japanese companies for joint production of branded footwear
Airport in Uzbekistan to buy spares for vehicles via tender
All news