Can banks charge “custody fees” on municipal savings deposits? You have to know that in certain cases banks have to pay “penalty interest” of up to 0.5% for deposits with the European Central Bank (ECB) (with certain restrictions, directly or through the sector bank). For this reason, banks in Austria are increasingly beginning to charge […]

Fairness between municipalities and bank, also when calculating interest. Regular account checks help to guarantee the correct account settlement and not to pay too much interest. In the current situation, acting at eye level is important for all parties. Not everyone accounts fairly and correctly. Mistakes can happen. Of course, banks may also adjust interest […]

Together with our customers, we have examined the essential requirements for loan requests from cities and municipalities. It is also about regional and partnership solutions. As a result, we present the success factors for municipal financing. FRC parameter This ensures that our customers achieve the best possible result and can maintain the necessary partnerships.

Coping with the health crisis combined with the subsequent economic challenges requires many contributions. An essential cornerstone of stability is the public sector with an unprecedented aid program. The effects on the communities are already visible. Among other things, this affects defaults in local tax and a slump in the share of income. Municipalities therefore […]

The municipalaties are now feeling the effects of the crisis, e.g. loss of local tax or a decrease in the share of income. In the case of new financing or debt restructuring, however, the municipalities benefit from the current situation around Corona / COVID-19. This should now be used by the municipalities as an opportunity […]

“Floor or no floor” – a sentence with a big impact. With regard to contracts, in the light of the current case law or in the handling of various banks on the subject of non-disclosure of the negative indicators, a first distinction must be made as to whether or not an interest rate floor was […]

COVID-19: Coping with the current health crisis demands contributions from all of us. The public sector, and thus the federal government, the federal states and the municipalities, is an essential cornerstone of financial stability. The Austrian federal government has issued an aid program of EUR 38 billion. Austria will also raise the necessary funds on […]

The Kommunal, the magazine for mayors, local politicians and administration, provides trends, practical examples as well as tips and tricks for working in the communities and is interested in our opinion on negative interest rate indicators in communities. Negative interest rate indicators continue to occupy the municipalities in Austria in the new decade and have […]

The free city of Rust is approx. 2,000 inhabitants a statutory city and its own administrative district in Austria. As part of our financial management, there are a variety of topics in the community as well as in our outsourced units, which led us some time ago to install a strong partner to oversee our […]

Current situation for claims from non-compliant interest rate adjustments by municipalities Negative interest rate indicators continue to occupy the municipalities in Austria in the new decade and have generally existed since March 2015. This is reflected both on the credit side of assets and on the debit side of variable financing in the municipalities’ budgets. […]