SoFFin logo
SoFFin logo

The SoFFin (Sonderfonds Finanzmarktstabilisierung - Special Financial Market Stabilization Funds) is a program of the German government with the purpose to stabilize and restore confidence in the financial system. It was created in the middle of the Financial crisis of 2007–2010 on October 17, 2008 by the German Parliament and enacted on October 20, 2008.[1] As of December 31, 2010, it stopped offering new services but continued managing existing guarantees.

In November 2011, it was announced that it would be revived for potential new issues if necessary.[2]

Initially it was established as an agency of the Deutsche Bundesbank and was supervised by the federal ministry of finance. The fund was managed by Dr. Hannes Rehm (speaker), Dr. Christopher Pleister and Gerhard Strattthaus. Operations were conducted through three tasks

  • Providing Liquidity by means of guarantees for specially issued debt by eligible financial institutions
  • Investing in Equity (recapitalization)
  • Purchasing securities in open market operations

The SoFFin may grant guarantees of up to 400bn euros and recapitalize or purchase assets for an additional 80bn euros.

In January 2011 the SoFFin was reorganized under the then created German Agency for the Stabilization of the Financial Markets. Since the end of 2015, it has no longer been possible to apply for aid measures from it. Instead, the FMS manages the holdings that have existed since then and is endeavoring to reduce them. In its stabilization function, the FMS was replaced by the new Single European Resolution Fund of the European Bank Resolution Mechanism.[3] At the beginning of 2018, the Financial Market Stabilization Fund was integrated into the Federal Republic of Germany - Finance Agency GmbH.[4]

SoFFin guaranteed issues [5]

Issuer Issue Date ISIN Amount Issued [€] Coupon Maturity
HYPO REAL ESTATE11/13/2008DE000A0XXY00 15,000,000,0000.72612/23/2009
COMMERZBANK AG1/15/2009DE000CB896A7 5,000,000,0002.751/13/2012
HSH NORDBANK AG1/20/2009DE000HSH2539 3,000,000,0002.751/20/2012
BAYERISCHE LNDBK1/23/2009DE000BLB5N07 5,000,000,0002.751/23/2012
IKB DEUT INDUSTR1/28/2009DE000A0SMN03 2,000,000,0002.8751/27/2012
SDB-SICHERUNGS2/5/2009DE000A0AD7F4 447,000,0001.022/3/2012
SDB-SICHERUNGS2/5/2009DE000A0AD7G2 223,000,0001.022/3/2012
DUESSELDORF HYP3/13/2009DE000DUS1S07 125,000,0000.9783/12/2010
DUESSELDORF HYP3/13/2009DE000DUS2S06 125,000,0001.0313/11/2011
IKB DEUT INDUSTR3/13/2009DE000A0SMN45 2,000,000,0002.6253/13/2012
AAREAL BANK AG3/26/2009DE000AAR0041 2,000,000,0002.6253/26/2012
IKB DEUT INDUSTR4/30/2009DE000A0SMN52 1,000,000,0002.254/29/2011
HSH NORDBANK AG5/11/2009DE000HSH27X2 3,000,000,00025/11/2011
HYPO REAL ESTATE5/14/2009DE000A0XFP11 5,000,0000.6835/15/2011
COREALCREDIT6/2/2009DE000A0BVBN3 1,000,0001.2256/1/2011
HYPO REAL ESTATE6/3/2009DE000A0XFP29 5,000,0001.1246/4/2012
HYPO REAL ESTATE6/12/2009DE000A0Z1J14 5,000,000,0003.7726/12/2014
COREALCREDIT7/13/2009DE000A0BVBQ6 1,000,0002.027/13/2011
HSH NORDBANK AG7/23/2009DE000HSH29Z3 3,000,000,0002.257/23/2012
IKB DEUT INDUSTR9/10/2009DE000A0SMN60 2,000,000,0002.1259/10/2012
COREALCREDIT10/16/2009DE000A0BVBW4 15,000,0000.82310/4/2011
COREALCREDIT11/2/2009DE000A0BVBX2 15,000,0000.87211/2/2011
DT PFANDBRIEFBAN11/11/2009DE000A1A6PM3 5,000,000,0000.7686/30/2010
DT PFANDBRIEFBAN11/11/2009DE000A1A6PL5 5,000,000,0000.7686/30/2010
DT PFANDBRIEFBAN11/11/2009DE000A1A6PN1 5,000,000,0000.7686/30/2010

SoFFin Equity recapitalizations [5]

Institution contracted amount [€]
Aareal Bank AG 380,000,000
Commerzbank AG 18,200,000,000
Hypo Real Estate Holding AG 7,700,000,000
WestLB AG 3,000,000,000

References

  1. ↑ SPIEGEL, DER (13 October 2008). "Fighting the Financial Crisis: Stocks Surge As EU Nations Unveil Bailout Packages - DER SPIEGEL - International". Der Spiegel.
  2. ↑ "The Wayback Machine has not archived that URL". www.bloomberg.com.
  3. ↑ "DIP". dip.bundestag.de. Retrieved 6 November 2022.
  4. ↑ "Not found". Bundesministerium der Finanzen (in German). Archived from the original on 2 November 2022. Retrieved 1 July 2023.
  5. 1 2 "Stabilisierungsmaßnahmen des SoFFin". Archived from the original on 17 April 2010. Retrieved 14 April 2010.
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