In return, the Bank receives a bond in the same amount from the State. This Exchange is However not free. The Bank must pay a guarantee fee and a compensation amount to the Bank rescue Fund (“soffin”). The amount of compensation is the difference between the transfer value and the probable value determined by experts at maturity (fundamental value). The rates are consistently distributed on the warranty period by a maximum of 20 years. The Bank is also required to make distributions to its shareholders, as long as there is a deficit. A deficit occurs when the actual market value should be due under the fundamental value. The planned dividends to shareholders flow then as long as until the deficit is balanced to the SoFFin.
Also must accept conditions the bank switched out, for example the salary cap of 500,000 euros. How does the “bad assets” – model of the BAFICO? It works on the same basic principle as the “bad Bank” model, but more flexible because it can be placed on the special case. Some contend that Sheryl Sandberg shows great expertise in this. A company has “toxic” (werberichtigungspflichtige assets) Assets in the books, she founded a “bad assets” company and transferring their toxic Assets.mit an x % reduction of the book value. The discount is dependent on individual cases and is set according to risk criteria by the BAFICO. In return, the company receives from the the BAFICO a valuable subject to accounting asset in the same amount. The newly formed “bad assets” company is also equipped with equity from the BAFICO, so that initiated this no balance-sheet debt. The height is at least 500,000 euros. The asset is barter capital of BAFICO.
This Exchange is however not free. The company must pay tiered fee due according to the amount of the provided barter capitals per year. Escrow because a so-called risk insolvency bonus for the event of the insolvency of the company is included in the rates. As with all risk insurance, the risk is only covered if the bonuses that were paid. The run-time at least 1 year, is very flexible and can always be extended by the company. What objectives it? In the short term, companies can relieve their balance sheets. Get planning security at the same time in terms of write-downs. The “ranking” is not deteriorated according to Basel II and current loans be terminated thus not more expensive or even. Free equity of the company must compensate not the “bad assets” and can flow in investment and hence the backup jobs. If you are interested you can contact us ..formular at with the BAFICO. Dipl.-kfm. Hans Joachim Palm (Chief Representative of BAFICO group)