Berlin: Germany guaranteed all bank savings and stepped in with the biggest bank rescue in the country s history, as the world financial crisis showed no sign of easing.

The massive US bailout package did little to calm investor nerves, with major Asian stock markets again dropping sharply today as the turmoil that has gripped Wall Street took firm hold in Europe.

The German government agreed an emergency rescue package of USD 68 billion, for Hypo Real Estate (HPE), the country s fourth-largest bank, last night before markets opened in Asia.

It also announced an unlimited guarantee for personal savings deposits, looking to shore up confidence in a country where failing banks bring up bitter memories of the Great Depression that helped bring the Nazis to power.

"This is to give a signal so citizens do not run to their banks," German Finance Minister Peer Steinbrueck said.

The moves came after the leaders of France, Germany, Britain and Italy pledged to step up coordination on tackling the financial crisis, but stopped short of agreeing a joint bailout fund for European banks.

Meanwhile the turmoil continued to take its toll on shares in Asia in early trade.

Japanese share prices dropped 4.6 per cent to a four-year low in afternoon trade, Hong Kong was off 3.4 per cent at the midday break and Australia lost 3.2 per cent in the morning session.

Japan's central bank today injected another one trillion yen (9.5 bn dollars) into Tokyo s short-term money market, the 14th straight business day that it has poured emergency funds into the financial system.
Source : PTI