Today a settlement agreement was signed by Crédit Agricole Corporate and Invest-ment Bank (“CA CIB”, formerly Calyon), Financial Guaranty Insurance Company (“FGIC”), IKB Deutsche Industriebank Aktiengesellschaft (“IKB”) and others.
As in the same period of the previous year, the first quarter of the 2011/12 financial year was dominated by the government debt crisis in Europe. In the eurozone, there was uncertainly due to the potential for further rescue measures for Greece in particular, as well as the risk of potential contamination for major euro member states, leading to a further increase in the risk premiums for governments and banks alike.
IKB Deutsche Industriebank AG has returned additional SoFFin guarantees totalling € 1.3 billion early. The guarantees returned comprise a volume of € 0.6 billion in the bond ISIN DE000A0SMN03 (maturing on 27 January 2012, 2.875%) and a volume of € 0.7 billion in the bond ISIN DE000A0SMN45 (maturing on 13 March 2012, 2.625%). Thus, current SoFFin guarantees for IKB amount to € 7.3 billion.
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The Board of Directors of IKB International S.A. has prepared the Bank’s annual financial statements for the 2009/10 financial year ended 31 March 2010 and submitted them to its General Meeting for approval. The preparation of the annual financial statements means that the conditions for calculating the loss participation of the silent partner contribution of IKB S.A. that ended on 31 March 2010 and the silent partner contribution due for repayment on 17 November 2010 have now been defined. These are explained below.
At the request of IKB Deutsche Industriebank AG on 4 February 2010, the Special Fund for the Stabilisation of the Financial Market (Sonderfonds Finanzmarktstabilisierung – SoFFin) today ruled to reduce IKB’s guarantee from a total of € 12 billion to € 10 billion effective from 17 February 2010. IKB had filed for the reduction as the Bank’s liquidity situation has now stabilised.
IKB Deutsche Industriebank AG’s Board of Managing Directors resolved on
1 February 2010 to reverse a positive effect of € 56 million which had previously been shown in the fair-value result as of 30 September 2009.