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Bundesbank to provide Hypo Real with liquidity

Mon Oct 6, 2008 5:45am EDT

BERLIN, Oct 6 (Reuters) - Germany's central bank, the Bundesbank, has agreed to provide embattled lender Hypo Real Estate HRXG.DE with short-term liquidity, the Finance Ministry said on Monday.

Bonds

Ministry spokesman Torsten Albig made the announcement at a regular news conference after Finance Minister Peer Steinbrueck said the country was considering a nationwide "umbrella" to shield its banking sector from market turmoil.

German government spokesman Ulrich Wilhelm added that a German federal guarantee for private savings was different to one being offered by Ireland, which he said targeted banks.

(Writing by Dave Graham)



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