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HRE may need more state cash

The beleaguered state and property financier Hypo Real Estate may need more state aid than previously expected, a report in Sunday newspaper Welt am Sonntag revealed.

Published: 19 July 2009 12:59 CEST

HRE may need more state cash

Photo: DPA

“I wouldn’t be surprised if a capital injection of €10 billion isn’t enough,” Michael Endres, head of the bank’s board of directors told the newspaper.

Estimates suggest the bank is running on a deficit of between €6 billion and €10 billion, and the state has so far only invested €3 billion in the bank.

Endres blamed further burdens from bad mortgages for the ongoing solvency problem at HRE. He also attacked the bank’s former head Georg Funke for his mismanagement before the global financial crisis.

He accused Funke of giving out credit in countries where HRE was not represented and whose financial situation the bank did not understand. Endres also refuted the idea that the collapse of US investment bank Lehman was the only cause of HRE’s troubles. “That was just the trigger,” he said.

A special fund for stabilising the financial market currently holds 90 percent of the HRE Holding company. The state is using squeeze-out compensations to try to aid and restore the bank without interference from other shareholders.

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Twint app can be installed on a mobile phone.

“Twinting” money with a smartphone is easy and convenient. Photo by Andrea Piacquadio from Pexels

In Switzerland, the word “Twint” is used both as a noun and a verb.

As a noun, it describes the mobile application which allows you to pay for various goods and services practically everywhere in the country.

As a verb, (“to twint”), it means to send someone money, or receive it, via the same app.

So what exactly is Twint?

Simply put, it is digital cash (not to be confused with bitcoin, which is digital currency) that was first introduced in Switzerland in 2014 and has become very popular since then.

Twint logo. Image by Twint.ch

People like it because it is an easy and quick way to make instantaneous payments, especially in situations when credit cards or physical cash can’t be used.

A big part of its convenience is that it can be used at cash registers, vending machines and parking meters, as well as in online shops — pretty much everywhere in Switzerland, even in places that don’t accept credit cards.

The only similar mode of payment would be your maestro debit card issued by your bank.

This video explains exactly how the process works.

Another advantage of Twint is that you can use it to send money to someone else’s mobile phone — as long as they also have Twint. And you can receive money the same way.

And there are no fees or charges for this service.

How does Twint work?

Anyone can use Twint, but you need a Swiss bank account or a credit card and, of course, a smartphone.

According to Twint website, you need a smartphone with either an iOS (from version 12.2 and upwards) or Android (from version 7 and upwards) operating system and Bluetooth capability (from version 4.0 and upwards).

“It is generally not possible for Twint to be used on Apple devices with an operating system older than “iOS 12.2” or on Android devices with an operating system older than “Android 7”. On Android devices without access to the Google Play Store (e.g. on certain HUAWEI models), the use of Twint app is also not possible”.

But If you have a compatible phone, installing Twint is easy.

Swiss banks offer their own version of the app, and you can download it directly from your bank’s website.

Then, when you use Twint to make a payment, the amount is debited directly from your bank account or credit card.

By the same token, if you receive payment from another Twint user, the money is automatically deposited in your account.

And you are not limited to just one Twint app.

If you have accounts is several banks, or have more than one credit card, you can install and use all of them.

READ MORE: How to open a bank account in Switzerland

Can Twint be used to make payments and receive money from abroad?

For the moment, Twint can be used solely in Switzerland and payments can be made only in Swiss francs – although this may change in future.

“We are, however, working closely with providers in other countries to develop an international and multi-currency solution”, according to Twint website.

You can find more information about Twint here.

READ MORE: Which bank is best for Americans in Switzerland?

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