FREQUENTLY ASKED QUESTIONS (FAQ)

How can we help you? Look here for the most frequent requests.

DO FLUCTUATIONS OF THE U.S.-DOLLAR EXCHANGE RATE AFFECT THE SUCCESS OF PORTFOLIOMANAGEMENT?

portfoliomanagement is not exposed to a direct currency risk, as the portfolio was acquired with a currency-matching refinancing, so that there are no open foreign exchange positions in the long term. A large portion of the ship loans administered are denominated in U.S. dollars and reported in euros. A rise in the value of the dollar will thus increase the reported outstanding receivables volume. By analogy, a fall in the value of the dollar will reduce the receivables volume.

WHAT IS AN “EXPOSURE AT DEFAULT”, EAD?

The Exposure at Default (EaD) denotes the amount of the existing loan receivables at the time a borrower defaults. A borrower is deemed to have defaulted if they have delayed the payment of interest and the repayment of capital for more than 90 days.

HOW WERE THE TWO EXECUTIVE DIRECTORS SELECTED AND APPOINTED?

During the period of transition and establishment, the positions in the Executive Board of portfoliomanagement were initially filled by Dr Sibylle Roggencamp and Dr Karl-Hermann Witte. The two Board positions were advertised. The Advisory Board, assisted by a recruitment agency, carried out a selection procedure with the result of Ms Ulrike Helfer and Dr Karl-Hermann Witte being appointed Executive Directors of the institution.

IS IT CONCEIVABLE THAT THE ADVISORY BOARD TAKE DECISIONS THAT CONFLICT WITH THE INTERESTS OF THE SPONSORING STATES?

No; resolutions of the Advisory Board can under no circumstances be taken against the will of one of the two sponsoring states. The Statutes provide that resolutions of the Board of Sponsors always have to be adopted unanimously. On the Advisory Board, both sponsoring states have a right of veto.

HOW IS AN EFFECTIVE AND PROFIT-ORIENTED REALIZATION OF THE PORTFOLIO ENSURED?

The interstate treaty and the Statutes closely tie the institution to the task of realizing and liquidating the acquired portfolio on a for-profit basis, as provided for in Article 2 of the interstate treaty. Liquidation is based on a reduction plan requiring the consent of the Advisory Board, which is then submitted to the Board of Sponsors for approval. Within the strategic framework the Executive Board takes the operational decisions, assisted by a team of proven banking and market experts. In addition, successful realization also depends on the development in the shipping markets.