Translation of "Vorrangige gläubiger" in English

However, senior creditors will not contribute to losses in the failing bank.

EU state aid rules do not require any contribution from depositors or other senior debt holders.

Suppose pension funds are de facto treated as senior creditors (as suggested by the case of Argentina).

Thus, pension funds were de facto treated as senior creditors, but by means of a highly disruptive mechanism: huge excess returns followed by default and pesofication.

In terms of what this means for bond investors, despite the differing approaches taken by authorities in Italy and Spain, the result was effectively the same: subordinated bondholders bore losses but senior creditors were unaffected.

This corresponds to the interbank rate used by the Commission for the calculation of its market reference rate, plus the normal 75 basis points it adds for loans in Spain (6,33 % on 19 April 2001 and 5,06 % on 1 March 2002), plus 600 basis points. These 600 basis points are justified by the absence of any security, the risk involved in the entry of a new company in the steel sector, which suffers from structural overcapacity, and the fact that, as explained earlier, it involves a much higher risk than a normal loan (in case of insolvency, all creditors would have priority) [20].

Instead she put Germany’s narrow near-term interests as a creditor first, leading her to make decisions that exacerbated the eurozone crisis, shifted its costs to others, and prevented any long-term resolution.

But this, too, poses a problem: The more junior creditors could vote to have themselves treated in the same way as more senior creditors.

Likewise, they now recognize that bailout loans that give the new lender seniority over other creditors worsen the position of private investors, who will simply demand even higher interest rates.

The Authority will not require contribution from senior debt holders (in particular from insured deposits, uninsured deposits, bonds and all other senior debt) as a mandatory component of burden-sharing under State aid rules whether by conversion into capital or by write-down of the instruments.

However, since the subordinated debts have been bought back in the last years and the remaining outstanding subordinated debts are small, those losses would not compensate the additional State aid required to repay the other, more senior, debt holders [68].

As regards measure 2, the Spanish authorities point out that the Social Security Treasury, as a preferential creditor, took priority over ordinary creditors, being ranked immediately after creditors with guarantees and debts owed to the company’s staff.

Given the extraordinarily high amount of State aid those two institutions have received compared to their size and the corresponding cost for the State, it is legitimate to assess whether burden-sharing by senior creditors could not be achieved.

Reflecting this, Heads of State or Government have stated that the ESM loans will enjoy preferred creditor status in a similar fashion to those of the IMF, while accepting preferred creditor status of the IMF over the ESM.

The US accounting rules, which are designed to protect investors, can sometimes conflict with the continental European concept, which gives priority to the protection of creditors.

If so, please give a brief description of the procedure to be followed and an indication of the ranking of the various categories of priority creditors.

COMMUNITIES e ranking of the various categories of priority creditors is: (a) funeral costs, (b) maintenance costs, (c) education costs, (d) medical costs, (e) legal costs, (f) insurance costs (Social Insurance Institute — IKA), (g) public authorities.