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German Debt Guarantee Ceiling May Rise in IMF Plan, FTD Says

The guarantee limit of 211 billion euros ($275 billion) accepted by Germany to underpin Europe’s temporary bailout fund may rise if the International Monetary Fund supplements the rescue facility, the Financial Times Deutschland reported, citing the Bundesbank.

Repayment of IMF loans has priority over obligations to other creditors in a solvency crisis, the newspaper said. This may mean German taxpayers will face a higher guarantee ceiling if the Bundesbank transfers a planned 45 billion euros to the IMF, FTD said, without naming any Bundesbank officials.

To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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