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EU property sector lobbying against €100bn regulatory hit

first_img EU property sector lobbying against €100bn regulatory hit whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeStyleVamp10+ Normal People Who Astonishingly Look Like CelebsStyleVampvirimi.com14 Efficient Arm Workouts To Build Might & Muscle – Virimivirimi.comAmoMediaMan Leaves Wife For Her Sister, Her Revenge Is BrilliantAmoMediaadvisor15 Plants that Repel Mosquitoes Naturallyadvisorcutenova.comTake a Peek at 10 of the Most Expensive Houses in the Worldcutenova.comHealth.recetasgetHeart Attack Early Warning Signs and SymptomsHealth.recetasgetDinnerZUTop 5 Foods That Help Lose Weight FastDinnerZU5log – Livinguard®This mask has been sold out in Germany 5 days after the government has tighten up5log – Livinguard®BuzzDestination7 Types of Men Who Are Not Made For RelationshipsBuzzDestination Tags: NULL Friday 14 January 2011 8:10 am whatsappcenter_img EUROPE’S property sector is lobbying regulators not to tighten the rules on interest rate swaps as it faces a possible €100bn (£84bn) hit from being lumped together with speculative investors.The proposed European Market Infrastructure Regulation (EMIR) could devastate property companies, which would need to put up collateral when taking out an interest rate swap to secure a fixed rate for a loan, companies say.“The … sector must now engage with this issue and lobby for an exemption … or face having to fully collateralise their interest rate swaps,” Bill Bartram from risk advisers J.C. Rathbone Associates said at a panel discussion.The rules, currently in the European parliament, would force financial counterparties such as banks and hedge funds to clear interest rate swaps through an external clearing house and not via private negotiation.But it will also hit real estate investment trusts (REITS), which get tax benefits from distributing most of their profits in dividends and are required to hedge risk with a swap when getting a loan.Clearing houses require counterparties to put up collateral, which could be too expensive for the real estate companies, which under the proposed rules also include funds holding real estate directly, and some private companies.Peter Cosmetatos, finance director at the British Property Federation, which represents companies including Land Securities, Hammerson and British Land, said he thought the government shared the property industry’s worries about EMIR.The risks could be alleviated if the regulation explicitly exempted real estate funds and pre-existing contracts, he said.“I think it would be ironic and disastrous if measures that are intended to improve market stability caused serious market instability by imposing a cash requirement on businesses that have just about managed to cope,” he said.The property industry would be hit by an estimated €65bn cash call for collateral on interest rate swaps if the plans do not change, interest rate and currency risk adviser Chatham Financial said in a report in November.Cosmetatos said it was difficult to be precise about how big the interest rate swap market for property was, but figures suggested a range of between €55bn and €100bn. alison.lock Show Comments ▼ More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Sharelast_img

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