Rewrites first paragraph with government source, adds no comment in paragraph 2, adds detail in paragraph 4
BERLIN, Oct 26 (Reuters) - The German government is in talks with Siemens Energy about state guarantees, a government source said on Thursday, amid major setbacks to the group stemming from its wind division, which has booked billions in losses amid quality issues.
The German economy ministry declined to comment.
The power engineering company's wind division, Siemens Gamesa, has booked billions of euros in losses amid quality issues, drawing the ire of top shareholder Siemens AG SIEGn.DE.
Due to the problems, Siemens Energy fears difficulties with banks in receiving guarantees and has approached the government and former parent Siemens to obtain the corresponding guarantee framework, according to WirtschaftsWoche, which first reported the talks.
WirtschaftsWoche reported that Siemens Energy is seeking up to 15 billion euros ($15.81 billion) in guarantees in total.
The German state would assume liability for 80% of an initial 10-billion-euro funding tranche, while banks would be liable for the remaining 20%, WirtschaftsWoche reported.
Siemens Energy declined to comment on the report.
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(Reporting by Matthias Inverardi and Christian Kraemer Writing by Friederike Heine and Miranda Murray; editing by Sabine Wollrab and Rachel More)
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