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HRE-Bad Bank becomes Depfa Bank plc. Come on

MUNICH (dpa-AFX) – A decade ago, Dublin-based Depfa Bank plc. its parent company Hypo Real Estate (HRE) torn into the abyss – now the federally owned HRE-Abwicklungsanstalt FMS has completed the sale of Depfa to the Viennese banking group BAWAG. The parties have agreed not to disclose the sales price. But the total income from the settlement exceeded the previous purchase price several times over, the FMS announced on Friday in Munich.

The decision to wind up Depfa under the leadership of FMS “has proven to be correct and very successful,” said FMS CEO Christoph Müller. Their own expectations have been clearly exceeded. “With the sale of the Depfa Group, FMS Wertmanagement is taking another important step in dealing with the consequences of the financial crisis,” said Jörg Kukies, State Secretary in the Federal Ministry of Finance.

HRE bought Dublin-based Depfa in 2007, shortly before the international financial crisis. Depfa specialized in public bonds and the financing of public projects. Some of these papers have a maturity of decades. Depfa refinanced these cross-country skiers with short-term loans. When bank lending came to a standstill in the financial crisis of 2008, Depfa ran out of money – and with it mother HRE. The federal government nationalized the HRE in 2009 and founded the FMS to handle HRE transactions and risk positions. In the meantime, FMS has reduced over two thirds of the original HRE portfolio of 175 billion euros./rol/DP/he

Reference-www.finanzen.at

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