Siemens Energy: State guarantees more expensive than expected - financial expert analyzes fees and effects.

Siemens Energy: State guarantees more expensive than expected - financial expert analyzes fees and effects.

According to a report by www.finanzen.net, the state guarantees for Siemens Energy will apparently be significantly more expensive than previously assumed. The federal government charges around three times as much fees for its guarantees worth billions as the banks have previously charged. This could amount to an estimated 500 million euros in fee payments to the federal government over the next three years.

The fee payments to the federal government amount to 120 basis points of the guaranteed volume for which the federal government guarantees. Banks had previously only charged just under 40 basis points. According to a company spokesman, the government's counter-guarantees are not intended as a permanent solution, but rather of a temporary nature.

CEO Christian Bruch mentioned a time frame of “less than two years” at the annual press conference. In November, Siemens Energy agreed a 15 billion euro package of guarantees with the federal government, banks and major shareholder Siemens in order to be able to continue accepting major orders in the future. The Siemens Energy share was temporarily trading 8.17 percent higher at 11.12 euros via XETRA.

The increase in guarantee fees by the federal government can have a significant impact on the market and the financial industry. First of all, this means higher costs for Siemens Energy, which can have a negative impact on the company's profitability. In addition, other companies claiming government guarantees could experience similar increases in fees, which would increase their financial burden. This could also have an impact on the valuation of corporate bonds and the creditworthiness of companies. As a result, this could lead to an increase in the cost of borrowing and lower investment in the market.

It remains to be seen how this development will affect the share prices of Siemens Energy and other companies that rely on government guarantees in the long term.