The measures described in Section 2.3 include state resources, as they are financed directly by FSC, a state-owned company (through the Danish Ministry of Economy) which, in the context of the financial crisis, makes different types of measures available to Danish banks. First, FSC allocates DKK 2 billion in cash to the newco share purchase agreement. Second, the FSC has committed to finance Newco`s assets, while FIH will repay its government-backed loans. This commitment can exceed DKK 13 billion. Third, the FSC waives an amount of interest to pay a guarantee to FIH Holding. (73) Consists of the share purchase agreement of March 1, 2012 and the following closing agreements of July 2, 2012. In addition to the share purchase agreement, the measures include several ancillary agreements between FIH Holding and FSC: in accordance with point 39 of the communication on depreciated assets, the Commission has therefore analysed in detail the market value of the measures. With the assistance of an external expert, it evaluated a probabilistic distribution of results for Newco`s asset portfolio and calculated the impact on the likely final liquidity values of the share purchase agreement. Based on expert advice, the Commission assessed the market value of Newco`s assets and modelled the expected return for FSC for the overall allocation of Newco`s capital liquidation values. It took into account all elements of the share purchase agreement, such as the net value of liquidity, the revenues and costs of the FSC and FIH groups, as well as the purchase price adjustment, which also included the loss-absorbing loan. The use of a distribution model is necessary to calculate the LNP for both the benefits of a 25% equity interest and the negative effects resulting from the combination of significant asset losses at Newco and a failure of FIH Holding if such a scenario were to occur. As of December 31, 2012, FIH Holding was owned by the Danish labour market pension fund, which held 48.8% of fiH Holding`s shares, PF I A/S (12) which held 48.8% of the shares, and the Board of Directors and senior management, which held 2.3% of the shares, with FIH Holding itself holding 0.1% of the shares.

The amended maturity sheet also provides for a ban on deposit prices when FIH`s market share exceeds 5%. This commitment allows FIH to further improve its financing position by eliminating deposits in the market while setting a threshold to prevent excessive practices. In addition, aggressive practices that protect competitors from excessive market behaviour will be prohibited. It should be noted that no market participants have commented on the FIH`s deposit price policy after the Commission has initiated proceedings on this matter. In 2009 and 2010, Moody`s lowered the FIH rating from A2 to Baa3. In 2010, the owners of FIH (Iceland`s financial supervisory authority and Iceland`s central bank) (17) agreed to sell their shares in FIH to the current owners.

Posted by / april 12, 2021
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