BONN. Sept 8: A feadtn* German banker has urged Group of Seven (G-7) Industrialised nations to give the Soviet Union bridging loans of around five billion Dollars to prevent a default on its 50bil lion-Dollar foreign debt, reports Reuter.

Hilmar Kopper, Chief Executive of Germany's biggest bank. Dcutshe Bank AG, told journalists late on Friday the bridging loans could be issued by the bank for International settlements and should mature in three lo five years.

The alternative is a moratorium.' Kopper said, adding that a cutoff of Western funds could result in the collapse of the emerging new Soviet political structure.

"If we want to help the Soviet Union survive, then we have to be ready to support in its new organisational form."

Kopper's remarks followed a similar appeal from Fridel Ncuber, Chief Executive at West Deutsche Landes Bank

Giroecntrale In Frankfurt last week.

Both bankers stressed that the Soviet Union faced a liq uidlty crisis due to political upheaval and a massive slump in its hard currency reserves, but there was no need lo re structure or reduce its external debt.

Any funds given to tide Moscow over the mounting liquidity crisis would need full backing from Western nations. In light of the uncertain future of the Soviet Union, commercial banks are unwilling to In crease thetr exposure.

Banks were watching developments with great interest and concern, Kopper said, appealing to the Soviet leadership to ensure the continued existence of the country's central state bank and the bank for foreign trade, despite decentralisation of its political structures.

This (the Bank for Foreign Trade) is the Soviet Union's

umbilical cord to the iritema tional financial community." Kopper said. Dismantling II would jeopardise the country's ability to get Western credits

The bank for foreign trade to an established, solid instltu tton and Its relationship to the

West has been very good so far.' he said.

Maintaining the existence of this institution would ensure that Western public and prt vale lenders need not worry about Soviet borrowers default 1ng on their loans.

Kopper said the Soviet central bank could be restructured into a federal Institution, with each republic's representation weighted according to Its economic strength.

One model might be the US Federal Reserve Bank, which had representatives from all 50 states. The planned European Community Central Bank could also serve as a model.