German Government Announces $670 Billion Bailout Package

Germany announced Monday that it has assembled a bailout package worth over $670 billion to shore up the country’s ailing financial system as part of an integrated European financial rescue effort.

The German finance ministry estimated the total figure to be $671 billion. The ministry said the package plans for up to $536 billion, in guarantees for banks, and $134 billion, to recapitalize banks and back up the guarantees.

The aim of the bailout is to create a viable financial instrument that will address Germany’s current liquidity shortages in a timely fashion.

The ministry said that aid would be available to both German financial institutions and German units of foreign banks.