3 Issuing costs of state guaranteed bonds - Financial Risk and ...

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Annex 1 Eligibility criteria for state guarantees A1.1.8 The Netherlands 31 Implementation date of scheme 23 October 2008 End date of entry into scheme 31 December 2010 (extended from 31 st December 2009) Fee for instrument The fee depended on the maximum tenor and the credit rating of the bank. If longer than 1 year the fixed (FF) and variable (VF) rate applied, whereas if shorter than 1 year just fixed rate applied. The following lists the fee depending on the credit rating of the institution: AAA: FF = 75, VF = 53; AA: FF = 80, VF = 68; A or A+: FF = 85, VF = 73; A-: FF=90, VF = 73; Other: FF = 110, VF = 93 (Maximum annual guarantee fee valid from 1 July 2010 onwards) Maximum tenor 3 years Institution criteria 1) a) Must be a bank; b) have its seat in the Netherlands; c) be authorised to perform its banking activities pursuant to Section 2:12(1), 2:13(1) or 3:111(1) of the Financial Supervision Act; and d) be registered in the register as referred to in Section 1:107(2)(a) of the Financial Supervision Act. 2) Must have a substantial business in the Netherlands 3) Must have a solvency ratio which is to the Guarantor's satisfaction, taking into account the requirements of the Financial Supervision Act and any agreement of the bank with, or any directive or request to the bank from, the Dutch Central Bank. No more than one member of a corporate group may be eligible under the scheme, unless the Guarantor determines otherwise. 31 For details see: http://www.linklaters.com/pdfs/publications/capitalmarkets/StateGuaranteesGuide.pdf; http://www.dsta.nl/english/Subjects/Guarantee_scheme; http://www.mayerbrown.com/publications/article.asp?id=7854&nid=6. 126
Instrument eligibility Annex 1 Eligibility criteria for state guarantees A non-complex senior unsecured debt instrument on standard market terms which falls within one of the following categories: a) certificates of deposit; b) commercial paper; or medium term notes which by their terms are expressed to be redeemed in one single payment and which carry interest at a fixed or floating rate. Instruments must be denominated in Sterling, Euro or US Dollar and not contain any event of default constituted by cross-default or cross-acceleration or right of prepayment by the issuer. Scale of scheme €200 billion 127
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Economic Papers are written by the
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Wherever possible London Economics
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Contents Page Annex 4 Results of di
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Tables, Figures & boxes Page Table
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Glossary vi Glossary BGN Bloomberg
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Executive summary Member States (Cy
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1 Introduction 1 Introduction 1.1
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1 Introduction 1.4 Research questi
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1 Introduction analysis of the lat
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2 Overview of state guarantee sche
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Page 86 and 87: 4 Impact of state guaranteed bonds
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Page 116 and 117: 5 Key empirical findings and polic
Page 118 and 119: References Acharya V.V. and Sundara
Page 120 and 121: Lando, D. (1997). 'Modeling Bonds a
Page 122 and 123: Annex 1 Eligibility criteria for st
Page 140 and 141: Annex 2 Comparison of SG and non-SG
Page 142 and 143: Annex 2 Comparison of SG and non-SG
Page 144 and 145: Annex 3 Analysis of missing issuin
Page 156 and 157: Annex 3 Analysis of missing issuing
Page 158 and 159: Annex 3 Analysis of missing issuing
Page 160 and 161: Annex 4 of diagnostic tests of issu
Page 162 and 163: Annex 4 of issuing cost model Figur
Page 164 and 165: Annex 5 -over model Annex 5 Results
Page 166 and 167: Annex 5 -over model Figure 25: Anal
Page 168 and 169: Annex 6 Availability of bank data A
Page 170 and 171: Annex 6 Availability of bank data T
Page 176 and 177: Annex 7 Linking Bloomberg and Banks
Page 178 and 179: Annex 8 Investigation of estimation
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