Deutsche Telekom has eased its liquidity situation by agreeing with its lending banks to extend a €5bn ($4.9bn) one-year loan, which was due to be repaid at the end of September, by another year.

Twenty-six banks have signed up to underwrite the loan, which, like the original facility, was lead managed by ABN Amro, Citibank, Deutsche Bank, Dresdner Kleinwort Wasserstein, HSBC and JP Morgan Chase. Final allocations will be announced at the end of September.