The EAA publishes its annual financial statements for the second abridged financial year (1 July to 31 December 2010)

One-fifth of portfolio already wound up

  • Reduction in portfolio exceeds forecasts
  • results driven by risk provisions successful wind-ups continue in Q1/2011
  • successful capital market launch
  • set-up complete

The Erste Abwicklungsanstalt (First Winding-up Agency) (EAA) has already wound up around 22 percent of its original portfolio, adjusted for exchange rate effects, in its first year of operation: By the end of March 2011, the public law financial institution had reduced the nominal volume of the portfolio by almost €17 billion. The portfolio, which was taken over as part of financial market stabilisation measures, has decreased from €77.5 billion to around €60.7 billion. By the end of 2010, €13.7 billion of the portfolio had been wound up, adjusted for exchange rate effects. Of this amount, €6.2 billion was attributable to the first abridged financial year (11 December 2009 to 30 June 2010) and €7.5 billion was attributable to the second (1 July 2010 to 31 December 2010). The successful winding up process thus exceeded expectations for 2010 by around 15 percent.

“The figures show that we are on the right track and the agency’s model is working,” said Managing Board members Markus Bolder and Matthias Wargers at the presentation of the financial statements for the second abridged financial year. The EAA will do everything in its power to continue surging ahead with winding up the commitments it has taken over, while at the same time minimising risks. “Of course we are also reliant on economic performance,” noted Wargers, “but we remain optimistic for 2011, despite the somewhat strained situation on the capital markets.” The Managing Board is sticking to its goal of halving the original portfolio volume by 2014.