Wednesday, May 20, 2009

Germany agrees 'bad bank' scheme

The German cabinet has agreed a "bad bank" scheme, to enable the country's lenders to remove remaining toxic assets from their balance sheets.

Under the plan, the banks will be able to swap their toxic debt for government-backed bonds, in return for paying an annual fee.

The government hopes the move will encourage banks to start lending again, both to each other and consumers.

Source: BBC

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