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Ireland's one-time biggest bank put up for sale again by German rescue fund

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The DEPFA bank on Commons Street at the IFSC, Dublin.

The DEPFA bank on Commons Street at the IFSC, Dublin.

The DEPFA bank on Commons Street at the IFSC, Dublin.

Germany is formalising new plans to sell Depfa Bank, the Irish-headquartered bank Angela Merkels' government bailed out a decade ago.

The German government is planning to hire advisers for a deal as soon as next month, according to the Bloomberg newswire.

Depfa, a specialist lender to public sector institutions, was the biggest bank in Ireland before the financial crisis in terms of assets.

Taxpayers here escaped guaranteeing its losses after the crash because it had been sold to Germany's Hypo Real Estate in 2007 for over €5bn.

When the financial crisis hit, it was was unable to secure short-term funding, forcing Hypo Real Estate to seek a bailout.

FMS Wertmanagement, (FMS-WM) the German bad bank that now owns Depfa, aims to find a buyer for the former Irish unit next year, sources said.

FMS-WM declined to comment. Previous plans, the most recent in 2014, to sell Depfa have been abandoned, and it had been suggested it would be wound down.

In April FMS-WM confirmed it was again considering selling the Irish business.

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