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Political claims

A political claim is deemed to have arisen if and when the political event in the debtor country that is regarded as event of loss is recognized as such by the responsible ministries of the Federal Government.

Such recognition will normally be granted at short notice in the case of warlike events or a payment moratorium. Frequently, a legislative or administrative act is, however, motivated by a lack of foreign exchange in the debtor country, which gradually becomes apparent in the course of time. In such a case it may take some time until a political claim is recognized. Until then, any receivables which have remained unpaid in the meantime have to be treated as owing due to Protracted Default (commercial claims) and indemnified accordingly.

Normally, politically motivated cases of non-payment are sooner or later settled under a rescheduling agreement between the Federal Government and the debtor country (bilateral rescheduling agreement), which is concluded on the basis of a framework agreement with all creditor countries organized in the Paris Club (multilateral rescheduling agreement). When such a multilateral rescheduling agreement is signed, then a political event of loss is deemed to have occurred in respect of the claims covered by that agreement at the latest. Any receivables to which the rescheduling agreement applies will be indemnified on application on a case-by-case basis until a bilateral agreement is signed and they are recognized by the debtor country.

If you have any queries regarding political claims, the persons to contact are:

For rescheduled debts: Ms Birgit Lauryn or Ms Andrea Baumgarten, phone +49 (040) 8834 - 9201 or +49 (040) 8834 - 9210 and
for case-by-case indemnification: Ms Karin Wolff, phone +49 (040) 8834 - 9551

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