The Foreign Currency Debt of German Länder and Municipalities

On 15 January 2015 Switzerland’s Central Bank decided to renounce the minimum exchange rate of the Swiss franc to the euro. Within a very brief period of time the Swiss franc appreciated by up to 20%. Switzerland’s low interest rate level previously attracted debtors to the country. Many of the beneficiaries of interest rate advantages from foreign currency loans turned into losers through the appreciation of the Swiss franc. The circle of debtors not only includes private persons, but also German Länder and municipalities. This article describes the debt structure and foreign currency debts of the Länder and municipalities.