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Berlin wants quick EU approval of HRE rescue plan: spokesman

01 October 2008, 15:10 CET

(BERLIN) - The German government expects swift approval by the European Commission of a rescue plan for property lender Hypo Real Estate, a finance ministry spokesman said Wednesday.

"We are sure of ... a swift and positive response by the European Commission," the spokesman told a press conference.

He said the German plan was "no different from what has been done recently in the Benelux countries or Great Britain," in reference to bailouts of the Franco-Belgian bank Dexia and British lender Bradford & Bingley.

On Monday, the German government and private banks unveiled a rescue plan for Hypo Real Estate, the future of which nontheless remains uncertain.

Berlin is to guarantee a large part of a 35-billion-euro (50-billion-dollar) credit line drawn up to keep Hypo Real Estate in business.

In Brussels meanwhile, the Commission said it was opening an in-depth investigation into the German government's rescue plan for another German financial institution, the regional bank WestLB.

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