Journal # The German cabinet has backed a plan to relieve the country's banks of their toxic assets. # 13.05.2009 18

The German cabinet has backed a plan to relieve the country's banks of their toxic assets. The plan put together by Finance Minister Peer Steinbrück allows banks to put those assets in "bad banks" and swap them for guaranteed bonds over a period of twenty years. Economists say the recovery of Germany's financial systems depends on the removal of toxic assets on lenders books. The Finance Minister says the plan won't mean spending more taxpayers' money on bailouts, and that there's enough money in the government's bank rescue fund, Soffin, to deal with the problem.