Berlin - Germany praised Wednesday's swap of detained members of Hezbollah for the remains of captured Israeli soldiers, calling it an important political and humanitarian step.

In Berlin, deputy government spokesman Thomas Steg confirmed that that the German foreign intelligence service BND had arranged the exchange, saying the BND enjoyed trust in the region and had the capabilities to mediate and build bridges.

He added that UN Secretary General Ban Ki Moon had praised Germany's mediation.

Steg said German deeply deplored the fact that the two missing Israelis, Ehud Goldwasser and Eldad Regev, were dead. He voiced condolences to their families.

The deaths were confirmed when tests proved the human remains were those of Regev and Goldwasser.

In all, Israel was to transfer five prisoners and the bodies of 199 enemy combatants to Lebanon in exchange for its two soldiers. (dpa)