German lender Hypo Real Estate secures 35 billion euros in credit guarantees from the German government and a consortium of banks in a last-minute deal.
Hypo, which lends money for property projects and to governments, had been especially vulnerable to the freeze in interbank lending, which worsened after the collapse of Wall Street investment bank Lehman Brothers.While Hypo's market value of just under $4 billion, is worth just a fraction of Germany's flagship lender Deutsche Bank, there had been fears that Hypo's difficulties could have undermined confidence in Europe's biggest economy.Joanna Partridge reports.
