The debts of Signa and Benko: A critical analysis of the financial situation.

The debts of Signa and Benko: A critical analysis of the financial situation.

According to a report from www.cash.ch, the complexity of the Signa and Benko group becomes clear when it comes to determining the total debts. According to the annual report, the Signa Prime division, which includes the most valuable properties and projects, had consolidated liabilities of 10.8 billion euros at the end of 2022. However, the insolvency application only contains 4.3 billion euros, as many loans are directly linked to real estate. The European Central Bank has asked Signa's lenders to create risk provisions for their outstanding debts.

The high debts at Signa and Benko could have far-reaching effects on the real estate market. On the one hand, Signa's bankruptcy and impending insolvency could lead to valuable properties and projects coming onto the market. This could lead to oversupply and depress property prices in some regions. On the other hand, lenders' risk provisions could lead to them becoming more restrictive when granting new loans. This would limit potential buyers and investors' options and reduce demand for real estate.

Overall, the insolvency of Signa and Benko could lead to disruption in the real estate market, which will have a long-term impact on prices, supply and demand. All market participants, from individuals to large investors, should closely monitor developments in order to adapt their strategies and take advantage of possible opportunities.