Germany's Loans

NPR's Edward Lifson reports that German stocks, particularly banking shares, are sharply down because of the Russian financial crisis. German banks have made some 30 billion dollars in loans to Russia, backed by the Bonn government. Analysts say, however, that even a complete default on the Russian loans would not create financial upheaval in Germany. Nevertheless, Chancellor Kohl's challenger in the upcoming federal election, Gerhard Schroeder, is making political hay out out of the current financial turmoil.



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