Solva zero
Setoff privilege of IBB
Pursuant to the notification by the German Bundesbank dated 19 August 2004, the guarantee by the Federal Land of Berlin with regard to receivables payable by Investitionsbank Berlin (IBB) leads to the “solva zero status”.
The “solva zero notification”:
...in agreement with the Federal Financial Supervisory Authority, we herewith inform you that due to the amendment to the Law on Investitionsbank Berlin (IBB), receivables payable by this institute are to be assessed with an address weight of 0% in principle I and in the large-loan sector effective as of 1 September 2004. Pursuant to the provisions of the Law on IBB, the factual requirements laid down in section 13 (1) No. 1 lit. a) principle I and of section 20 (2) sentence 1 No. 1 lit. e) of the German Banking Law are fulfilled." [Notification by the German Bundesbank dated 19 August 2004]