Berlin - The head of Germany's state-owned KfW development bank resigned Monday amid the financial market crisis that has severely dented performances at German banks.

Ingrid Matthaeus-Maier, 62, is to leave her post with immediate effect and retire in September because of "acute health problems," the KfW said.

Banking sources linked her departure to the troubles at the IKB Deutsche Industriebank, in which the KfW holds 43 per cent.

Finance Minister Peer Steinbrueck said Monday the KfW had to take a writedown of 1.8 billion euros (2.8 billion dollars) because of its involvement in IKB.

He corrected remarks made earlier by KfW board member Juergen Koppelin who told Deutsche Presse-Agentur dpa that the IKB would need an additional 1.8 billion euros in bailout money, on top of the 8.5 billion euros it has already received.

The IKB has been badly hit by its speculative trading in the US subprime mortgage market and has had to be bailed out repeatedly. The KfW has stumped up 6 billion euros so far.

Matthaeus-Maier said she "cannot concentrate on my work with full strength" because of the turbulence surrounding the IKB and the ongoing discussion about her person. The situation was proving "increasingly damaging to the KfW," she added.

The IKB is mainly involved in providing long-term finance for medium-sized German companies.

The KfW was set up after World War II as a state-backed financial institution aimed at providing funds for rebuilding the German economy.

It had long been rumoured that Matthaeus-Maier's contract would not be extended when it came up for renewal next year.
Berlin (dpa) - The head of Germany's state-owned KfW development bank resigned Monday amid the financial market crisis that has severely dented performances at German banks.

Ingrid Matthaeus-Maier, 62, is to leave her post with immediate effect and retire in September because of "acute health problems," the KfW said.

Banking sources linked her departure to the troubles at the IKB Deutsche Industriebank, in which the KfW holds 43 per cent.

Finance Minister Peer Steinbrueck said Monday the KfW had to take a writedown of 1.8 billion euros (2.8 billion dollars) because of its involvement in IKB.

He corrected remarks made earlier by KfW board member Juergen Koppelin who told Deutsche Presse-Agentur dpa that the IKB would need an additional 1.8 billion euros in bailout money, on top of the 8.5 billion euros it has already received.

The IKB has been badly hit by its speculative trading in the US subprime mortgage market and has had to be bailed out repeatedly. The KfW has stumped up 6 billion euros so far.

Matthaeus-Maier said she "cannot concentrate on my work with full strength" because of the turbulence surrounding the IKB and the ongoing discussion about her person. The situation was proving "increasingly damaging to the KfW," she added.

The IKB is mainly involved in providing long-term finance for medium-sized German companies.

The KfW was set up after World War II as a state-backed financial institution aimed at providing funds for rebuilding the German economy.

It had long been rumoured that Matthaeus-Maier's contract would not be extended when it came up for renewal next year. Berlin (dpa) - The head of Germany's state-owned KfW development bank resigned Monday amid the financial market crisis that has severely dented performances at German banks.

Ingrid Matthaeus-Maier, 62, is to leave her post with immediate effect and retire in September because of "acute health problems," the KfW said.

Banking sources linked her departure to the troubles at the IKB Deutsche Industriebank, in which the KfW holds 43 per cent.

Finance Minister Peer Steinbrueck said Monday the KfW had to take a writedown of 1.8 billion euros (2.8 billion dollars) because of its involvement in IKB.

He corrected remarks made earlier by KfW board member Juergen Koppelin who told Deutsche Presse-Agentur dpa that the IKB would need an additional 1.8 billion euros in bailout money, on top of the 8.5 billion euros it has already received.

The IKB has been badly hit by its speculative trading in the US subprime mortgage market and has had to be bailed out repeatedly. The KfW has stumped up 6 billion euros so far.

Matthaeus-Maier said she "cannot concentrate on my work with full strength" because of the turbulence surrounding the IKB and the ongoing discussion about her person. The situation was proving "increasingly damaging to the KfW," she added.

The IKB is mainly involved in providing long-term finance for medium-sized German companies.

The KfW was set up after World War II as a state-backed financial institution aimed at providing funds for rebuilding the German economy.

It had long been rumoured that Matthaeus-Maier's contract would not be extended when it came up for renewal next year. (dpa)