HSH, one of the world’s biggest shipping financiers, is suffering from a four-year slump in the industry.
“All those involved are aware that an increase of the framework guarantee is the most effective measure to boost the core capital,” a spokesman for the Finance Ministry of regional state Hamburg told Reuters late Saturday.
A spokesman for the Finance Ministry of Schleswig-Holstein state said it was examining an increase of state guarantees “as likely to be the most effective instrument”.
The bank originally had €10bn (£8.06bn) of guarantees from the two states, and last year it returned €3bn, but the slowdown in the global economy has hit shipping finance hard. HSH reported sharply lower first-half results and warned of further potential losses in August.
The Hamburg-based lender in recent weeks has given the impression that it could manage with a smaller framework of guarantees even though it projected much higher default rates from its ship loans.