FRANKFURT, Dec. 13 (Xinhua) -- The loans provided by some German insurance companies to the ailing real estate and retail giant Signa could be affected by the ongoing bankruptcy proceedings, media reports said on Wednesday.
Leading German insurance companies, such as Munich Re, Allianz, and R+V, have financed Signa's real estate projects in Germany in the form of loans and stakes, media reports said citing insiders. The total exposure of German insurance companies to Signa could reach billions of euros, they said.
Although most of the loans were granted against collateral, it is still possible that the insurance companies will suffer losses as the value of properties used by Signa as collateral has been decreasing, German media reports said.
At least some insurers are understood to have taken direct stakes in Signa companies in addition to the loans they had granted.
Three more divisions of Signa group -- Signa Financial Services GmbH, Signa REM Germany Rent GmbH and SCAx GmbH -- filed for bankruptcies in different German cities last week.
Elevated construction material prices and high interest rates have piled pressure on property developers in the country. Several property developers in Germany, of which Signa is one of the best known, have either filed for insolvency or went into bankruptcy this year. ■
