German banks, insurers chip in 8 bln eur for Greece

* German financial groups agree not to sell Greek bonds

* agree to maintain credit lines to Greece, banks

* agree to renew 3.3 bln euros credit lines

(Adds analyst reaction, background)

BERLIN/FRANKFURT, May 7 (BestGrowthStock) – Germany’s financial
sector will contribute 8.1 billion euros ($10.87 billion) over
three years to round out a 110 billion euro bailout of Greece,
the German Finance Ministry said on Friday. [ID:nBAT005421]

The deal for a private-sector contribution from German
financial institutions which include Deutsche Bank (DBKGn.DE: )
insurer Allianz (ALVG.DE: ) and Munich RE (MUNVGn.DE: ) comes as the
German lower house of parliament approved a law to free up
taxpayer funds for a Greek rescue.[ID:nBAT005422]

In a statement, the finance ministry said German banks and
insurers had agreed to maintain existing credit lines to Greece
and its financial institutions until May 2013 as well as to roll
over 3.3 billion euros in credit lines which are set to expire.

In a parallel step, German institutions agreed to provide
the Greek state with up to 4.8 billion euros for bonds or other
forms of finance to replace bonds which are set to come due by
May 6, 2013.

The European Union and the International Monetary Fund
agreed last week to fund a rescue package for Greece after
Athens committed itself to years of painful austerity.

Stock Market Investing

(Reporting by Sarah Marsh and Dave Graham in Berlin; Writing
by Edward Taylor; Editing by Michael Shields)
($1 = 0.7508 euro)

German banks, insurers chip in 8 bln eur for Greece