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FINANCIAL CRISIS

Lone Star aiming to sell subprime victim IKB

US investment fund Lone Star has begun the process of selling the German bank IKB, the country's first financial crisis victim, which Lone Star bought in 2008, an executive said Wednesday in an interview.

Published: 13 October 2010 11:29 CEST
Lone Star aiming to sell subprime victim IKB
Photo: DPA

“The bank has been cleaned up and is now attractive for a new strategic partner,” Lone Star’s European boss Bruno Scherrer told the business daily Handelsblatt.

“We are going to present IKB to potential investors in November. A sale in the first quarter of 2011 is possible,” he added.

IKB, which specialises in business loans, was ruined by the financial crisis that erupted in mid 2007 owing to speculative investments made in the US market for high-risk or sub-prime mortgages.

German authorities were forced to inject €10 billion ($14 billion) to save the institution, before selling it to Lone Star for just €137 million, which raised an uproar in the country.

Scherrer told Handelsblatt that IKB, could hope to make “substantial profits” within two to three years.

In the first quarter of its 2010/2011 fiscal year, which ended on June 30, IKB nonetheless posted another net loss, of €125.2 million.

AFP/rm

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TRAVEL

US reclassifies Switzerland: What does it mean for American travellers?

America’s public health agency eased travel alerts for dozens of countries this week, including Switzerland. But does it mean that people from the United States can now travel here?

Published: 11 June 2021 11:37 CEST
US reclassifies Switzerland: What does it mean for American travellers?
Not yet, but hopefully soon. Photo by Jan Rosolino / Unsplash

Switzerland in early June announced vaccinated travellers would be able to come on June 28th. Therefore, this story is now out of date. Please click here for more information. 

Due to massive vaccination efforts around the world, the US Centers for Disease Control and Prevention (CDC) lowered travel warning levels  for more than 110 countries and destinations, including Switzerland.

From the highest level four previously, which means all travel is discouraged, Switzerland was ‘promoted’ to Level 3, allowing travel for fully vaccinated individuals.

In total, 14 countries, including Switzerland’s neighbours France and Italy, have been reclassified to a lower level.

Does this mean American tourists can now come to Switzerland?

Even though the CDC has cleared travel for vaccinated US residents, it doesn’t mean they are now allowed to enter Switzerland.

For the time being, travel ban is still in place for most third countries, including the United States. The only exceptions are Swiss citizens or permanent residents returning to Switzerland.

READ MORE: When will Americans be allowed to travel to Switzerland again —and vice-versa?

There are some other exemptions as well, including people whose presence in Switzerland is absolutely necessary to maintain the functioning of the healthcare system or public security and order, death of a close family member in Switzerland, and to continue essential medical treatment that began in Switzerland or abroad.

Each of these conditions must be proven with official documentation.

For other ‘special necessity’ rules, see SEM’s page.

Basically, this means that tourists or other random travellers can’t come to Switzerland at the moment.

There are, however, some promising signs that this restriction may be lifted.

Swiss president Guy Parmelin is scheduled to meet with his US counterpart, Joe Biden, on June 15th. Biden will be in Geneva for high-level talks with Russia’s president Vladimir Putin. 

It is not known what Switzerland and the United States will discuss at the meeting, beyond matters of importance to both nations, but there is a possibility that the subject of easing travel restrictions on both sides will be raised.

Also, under France’s new traffic light travel system, fully-vaccinated travellers can now enter France from non-EU countries, including the US.

This does not apply to Switzerland yet, but as the two countries share a border and both are part of the Schengen zone, Swiss entry regulations for US tourists might be relaxed in the near future — though not at this time.

Does this mean US residents can ‘slip’ into Switzerland through France?

Borders between the two countries are pretty porous and checks random at best, but if you attempt to get into Switzerland this way, you’d be breaking the law.

The only US citizens who can come into Switzerland legally right now are those residing in the EU/EFTA states, or one of the third nations deemed safe by public health officials:  Australia, New Zealand, Cyprus, Rwanda, South Korea, Singapore, and Thailand.

In other words, it’s not the nationality of a traveller that counts but their place of residence.

What about Swiss citizens going on vacation to the United States?

The US still has a ban in place for tourists from the EU, including Switzerland. It also has similar exceptions — that is, US citizens and permanent residents returning from abroad.

The US is forming expert groups to decide when to lift global travel restrictions that have been in place since March 2020.

However, this will probably take time and, despite mounting pressure from the travel industry and airlines, US-bound travel may not be on the horizon for this summer.

READ MORE: How to get Switzerland’s Covid-19 health pass

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