German banks plan Iceland loans consortium: paper

Posted 30/11/2008 - 02:04 by steveejeb

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2008-11-30 (All day)

FRANKFURT (Reuters) - German banks plan to forge a creditors' consortium to help them recoup the outstanding debts of Icelandic borrowers, a German magazine reported without naming its sources.

The proposed consortium would restructure the loans owed by Iceland's banks Kaupthing (KAUP.IC: Quote, Profile, Research), Glitnir and Landsbanki, forgoing some claims and giving them more time to repay, the magazine Der Spiegel reported in an article provided to Reuters before publication on Monday.

The German banks have had initial talks with Icelandic regulators and lawmakers over the matter, the magazine added.

German banks gave most to Icelandic borrowers and were owed $21 billion before the recent financial storm swept markets, figures released by the Bank for International Settlements showed last month.

(Reporting by Ludwig Burger, editing by Anthony Barker)