Feb. 24 (Bloomberg) -- The German state of Schleswig- Holstein faces bankruptcy, dragged down by the plight of public bank HSH Nordbank AG, Bild newspaper said, citing Rasmus Voege, vice president of the state’s ruling Christian Democratic Union.

The state governments in Schleswig-Holstein and Hamburg are discussing plans today to provide the bank with 3 billion euros in capital and 10 billion euros in guarantees, Bild reported.

Bild cited Wolfgang Kubicki, chairman of the Free Democratic parliamentary group, as saying that HSH Nordbank may need another 3 billion euros at the end of 2009. He has asked Federal Finance Minister Peer Steinbrueck for help, Bild said.

If no support is forthcoming, Schleswig-Holstein faces a “political bankruptcy like Iceland,” Bild cited Kubicki as saying.

To contact the reporter on this story: Jana Randow in Frankfurt jrandow@bloomberg.net.

Last Updated: February 24, 2009 02:18 EST