Germany AT1 clarity turns up heat on other jurisdictions

By Graham Bippart
16 Apr 2014

The German finance minister’s announcement last week that coupons on additional tier one capital issued by the nation’s banks would be tax deductible — a key feature of the product — has turned up the political pressure on countries like the Netherlands to speed up the process of clarifying their own positions and creating a level playing field.

Wolfgang Schaueble announced on Thursday last week that the 16 federal states of Germany had, after what market participants said was a long and arduous process, unanimously agreed that coupon payments on AT1 should be tax deductible for the issuer and that investors in German AT1 debt should ...

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