Germany’s financial sector will contribute about € 8 billion to Greece


BERLIN - A voluntary contribution of financial institutions in Germany for aid to Greece with the financial crisis will be more than 8 billion euros and will include the maintenance of credit lines and holding of bonds by three years, according to a spokesman for the German Ministry of Finance Martin Kreienbaum.

Government officials and financial institutions Germans met yesterday to discuss the details, like what the Greeks who will win bonus during the three years of the rescue package of 110 billion euros offered by Greece to the euro area Monetary Fund (IMF). Banks and insurers have promised to keep 3.3 billion euros in credit lines and continue holding 4.8 billion euros in Greek bonds over the next three years.

The credit lines of about 3.3 billion euros that will expire “should be replaced by new lines of credit or other forms of financing,” the ministry said in a statement. Banks and insurers will report biannually to its commitments to the national regulator of financial services.

The German Finance Ministry has argued that the contribution of the banks will help the government of Germany for its commitment to provide 22.4 billion euros in three years for Greece, in the bailout package of 110 billion euros.

On Tuesday the German banks and insurers had agreed to help with the rescue plan through the subscription of a planned bond issuance of state bank KfW Banking Group, through which German support will be provided.

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