BERLIN Dec 1 The German government aims to
revive the market for the securisation of credit default risks
to prevent a credit crisis hitting the economy, a senior
government source said on Tuesday.
The government would present the idea at a meeting
Chancellor Angela Merkel is hosting on Wednesday with business
leaders and bankers to discuss tight credit conditions in
Germany, the source said.
Under the plan, state-owned development bank KfW would
facilitate the removal of credit default risks from banks'
balance sheets by offering guarantees for mezzanine, or
mid-level tranches of assets, the source said.
(Reporting by Matthias Sobolewski, writing by Paul Carrel)
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