Germany not yet planning to buy bad assets, minister says

Other News Materials 13 October 2008 19:01 (UTC +04:00)

Germany will not initially be buying up bad assets from banks, Finance Minister Peer Steinbrueck said Monday, reported dpa.

He said said the "two pillars" of the rescue plan as adopted were a guarantee for interbank lending and a recapitalization fund.

"A third pillar could be buying up the bad assets," he said, noting this had been the focus of the 700-billion-dollar US rescue for Wall Street.

Saying the German plan was different, he said the government would have to check the bad assets situation first.

The minister said banks receiving state aid would not be permitted to pay bonuses to executives or dividends to shareholders.