FRANKFURT, Sept 4 (Bernama-dpa) -- The German government is preparing to reduce its 16.5 per cent stake in Commerzbank, a government agency announced on Tuesday, reported German news agency dpa.
This move marks a step towards the state's exit from the lender, following its acquisition of a significant stake during the global financial crisis.
The federal government intends to gradually reduce its stake in the bank, the German Federal Finance Agency said.
"The Federal government's investment in the Commerzbank in 2008 and 2009 was important in order to protect financial market stability in the midst of the banking crisis," said Florian Toncar, a lawmaker who serves as parliamentary state secretary in the Ministry of Finance.
"Commerzbank is a stable and profitable institution again," he said. "Consequently, the federal government will sell its shares in the successfully stabilised institute step by step."
Commerzbank received €18.20 billion in capital assistance as a result of the 2008 crisis. Some €13.15 billion has been repaid to date.
The government still holds a 16.5 per cent stake in the bank, which has now been profitable since 2021.
An interministerial steering committee led by Toncar will decide on sales steps "in due course," the agency statement said.
--BERNAMA-dpa
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