HSH bankruptcy: is the big Nordbank bill coming?

HSH bankruptcy: is the big Nordbank bill coming?

HSH Nordbank has already cost the city of Hamburg quite a bit in the past. Although the bank has long since been sold, there are still some legacy issues that are due to be finally wound up this year. Will the budget of the Hanseatic city be burdened again by the pending transactions? The left demands an exception. On Tuesday, the Finance Committee of the Hamburg Parliament will deal with the issue. If the left has its way, this case should be exempted from the debt brake. Otherwise, the city’s core budget, which has already been weakened by Corona, would be put under too much strain, says public company expert Norbert Hackbusch from the left.

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However, when asked by MOPO, the tax authority of the city of Hamburg said something else: It was not about new debts, which therefore did not violate the debt brake. The burdens on state budgets are not new. Hamburg: Left expert warns of a weakened financial budget

In the past, Hamburg and Schleswig-Holstein had repeatedly saved their former joint state bank from bankruptcy at a cost of billions and then sold it in 2018 on EU instructions – at a loss to an American group of investors. Now they have to bear half of the costs of dealing with contaminated sites. Contrary to what left-wing expert Hackbusch claims, the cancellation of the bonds of HSH Finanzfonds AöR (FinFo), for example, would not mean any new debt for the city, according to the Hamburg tax authorities. These debts have already been taken into account in the budget, but so far as liabilities to FinFo. The bonds are to be divided between the two federal states by August 31. Hamburg will refinance the bonds in each case, which is cheaper than the continued financing by FinFo.

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Winding up of HSH PM: Hamburg tax authority gives the all-clear

In addition, Hackbusch is of the opinion that the additionally planned liquidation of the HSH portfolio management company (PM), even with the currently sensationally high ship prices, would leave additional costs of several hundred million euros, which would burden the core budget. The tax authority, on the other hand, is optimistic that the sale of the ship loans can significantly reduce the burden on state budgets. You might also be interested in: What’s going on? Hamburg’s CDU leader has disappeared – party friends tease

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In 2016, the PM took over bad ship loans from HSH Nordbank with a nominal value of 4.1 billion euros and paid 2.4 billion for them, now it is planning a bundled sale of these loans.

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