Federal government wants to reduce participation

by times news cr

2024-09-04 05:39:35

The federal government holds a stake of almost 17 percent in Commerzbank. This is to end in the medium term.

The state is planning to exit Commerzbank. As a first step, the federal government wants to reduce its stake in the institute, as the Finance Agency of the Federal Republic of Germany announced. “The federal government’s entry into Commerzbank in 2008 and 2009 was important in order to protect financial market stability in the midst of the banking crisis,” explained Florian Toncar, Parliamentary State Secretary in the Federal Ministry of Finance and Chairman of the relevant inter-ministerial steering committee. Now Commerzbank is once again a stable and profitable institute. “It is therefore necessary for the federal government to gradually divest itself of the shares in the successfully stabilized institute.”

The bank’s economic situation has steadily improved since 2021, said Eva Grunwald, managing director of the finance agency. The federal government is therefore reacting logically by reducing its stake in Commerzbank and beginning the exit. The sale of the share package in question is to be carried out transparently and in a way that protects the market, the statement said. The interministerial steering committee will decide on further sales steps in due course.

Commerzbank got into financial difficulties in the wake of the 2008 financial market crisis and received capital assistance totaling 18.2 billion euros from the Financial Market Stabilization Fund (FMS) in 2008 and 2009 to maintain financial market stability. According to the information, around 13.15 billion euros have been repaid so far. The federal government currently holds a 16.49 percent stake in Commerzbank through the FMS.

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