The Hessian Ministry of Finance to Minister Thomas Schäfer can not accept the charges.(Photo: photo alliance / Arne Dedert / d)
Saturday, August 25, 2018
With the purchase of special derivatives Hesse tries to secure loans for the future with a so-called low interest rate. But according to a media report, the federal state is doing wrong. The state government denies that.
The Land of Hesse defends itself against the accusation that it has tax money on risky financial transactions with interest rate derivatives. "Hesse does not speculate on tax money, on the contrary: the use of so-called derivatives serves to predict and predict part of the loans contracted by the state," said the Ministry of Finance in Wiesbaden. This responded to a report from the "Welt am Sonntag". The newspaper reported that the country threatened to spend billions of dollars on long-term financial transactions.
Concretely, these are 65 so-called interest rate hedging derivatives, which the debt administration of the Hessian Ministry of Finance purchased in 2011. For example, a so-called low interest rate would have been secured for the future. Because of the persistent years of low interest rates, but this bet did not work, it said in the report. What the financial transactions will ultimately cost the Hessian taxpayers, although not yet clear, because not all papers have been started.
For the first ten documents that were launched in 2013, the Hessian Court of Audit calculated additional costs of € 375 million. Currently the derivatives portfolio of the country is negative with 3.2 billion euros. The Ministry of Finance has not confirmed the figures. The country behaved no differently than the private house builder, who also tries to secure low interest rates for as long as possible. "We have been very successful in the past," it said in a statement from the ministry.
All derivative instruments at the end of 2017 would have saved the taxpayer a good EUR 230 million. "We can not confirm other circulating numbers, it is true that we cover ourselves against rising interest rates and that, like with any other insurance, it costs money."
The Court confirms the costs
In the "Welt am Sonntag" is also a report of the Hessische Staatscourcht of the speech on derivatives practice, which was never completed, and the publication of financial auditors and the ministry for a year to argue. A spokesperson for the State Audit Office explained that at the moment, as is usual in such procedures, problems at work level were clarified. Only after the latest clarification of the facts will a preliminary report be drawn up on the basis of valid data.
With regard to the extra costs of € 375 million mentioned in the report, the speaker said that this amount had actually been mentioned in a debt report from the National Debt Commission for the 2013 financial year, but an extrapolation presented "on the basis of the current circumstances" the interest rate over the term of 40-year derivatives, these extra costs can be overcompensated and "generally lead to profit," said the Court's spokesman.