German central bank to provide Hypo Real with liquidity

BERLIN - Germany's central bank, the Bundesbank, has agreed to provide embattled lender Hypo Real Estate with short-term liquidity, the Finance Ministry said on Monday.

Ministry spokesman Torsten Albig made the announcement at a regular news conference after Finance Minister Peer Steinbrueck said the country was considering a nationwide "umbrella" to shield its banking sector from market turmoil.

German government spokesman Ulrich Wilhelm added that a German federal guarantee for private savings was different to one being offered by Ireland, which he said targeted banks.