FORM 18-K/A
For Foreign Governments and Political Subdivisions Thereof
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 3
to
ANNUAL REPORT
of
LANDWIRTSCHAFTLICHE RENTENBANK
(Name of Registrant)
Date of end of last fiscal year: December 31, 2016
SECURITIES REGISTERED
(As of the close of the fiscal year)*
| Title of Issue | | Amount as to which
registration is effective | | Names of exchanges
on which registered |
| N/A | | N/A | | N/A |
| * | The registrant files annual reports on Form 18-K on a voluntary basis. |
Name and address of person authorized to receive notices
and communications from the Securities and Exchange Commission:
KRYSTIAN CZERNIECKI, ESQ.
Sullivan & Cromwell LLP
Neue Mainzer Strasse 52
60311 Frankfurt am Main
Germany
+49 (69) 4272 5200 | | SINA R. HEKMAT, ESQ.
Hogan Lovells US LLP
875 Third Avenue
New York, NY 10022
+1 (212) 918 3000 |
The undersigned registrant hereby amends its Annual Report on Form 18-K for the fiscal year ended December 31, 2016, as follows:
| | • | Exhibit (d) is hereby amended by adding the text under the caption “Presentation of Financial and Other Information” on page 3 hereof to the “Presentation of Financial and Other Information” section. |
| | • | Exhibit (d) is hereby amended by adding the text under the caption “Exchange Rate Information” on page 3 hereof to the “Exchange Rate Information” section. |
| | • | Exhibit (d) is hereby amended by adding the text under the caption “Recent Developments — Landwirtschaftliche Rentenbank” on pages 4 to 6 hereof to the “Recent Developments — Landwirtschaftliche Rentenbank” section. |
| | • | Exhibit (d) is hereby amended by replacing the text under the caption “Recent Developments — The Federal Republic of Germany — Overview of Key Economic Figures” with the text under the caption “Recent Developments — The Federal Republic of Germany — Overview of Key Economic Figures” on pages 7 to 9 hereof. |
| | • | Exhibit (d) is hereby amended by adding the text under the caption “Recent Developments — The Federal Republic of Germany — Germany’s General Government Deficit/Surplus and General Government Gross Debt” on page 9 hereof to the section “Recent Developments — The Federal Republic of Germany — Germany’s General Government Deficit/Surplus and General Government Gross Debt”. |
| | • | Exhibit (d) is hereby amended by adding the text under the caption “Recent Developments — The Federal Republic of Germany — Other Recent Developments — German General Elections for the Bundestag” on page 10 hereof to the section “Recent Developments — The Federal Republic of Germany — Other Recent Developments — German General Elections for the Bundestag”. |
| | • | Exhibit (d) is hereby amended by replacing the text under the caption “Recent Developments — The Federal Republic of Germany — Other Recent Developments — Independence Referendum in Catalonia” with the text under the caption “Recent Developments — The Federal Republic of Germany — Other Recent Developments — Independence Referendum in Catalonia” on page 10 hereof. |
| | • | Exhibit (d) is hereby amended by adding the section “Recent Developments — The Federal Republic of Germany — Other Recent Developments — The European Union and European Integration” on page 10 hereof to the section “Recent Developments — The Federal Republic of Germany — Other Recent Developments”. |
This report is intended to be incorporated by reference into Landwirtschaftliche Rentenbank’s prospectus dated December 22, 2016 and any future prospectus filed by Landwirtschaftliche Rentenbank with the Securities and Exchange Commission to the extent such prospectus indicates that it intends to incorporate by reference this report.
TABLE OF CONTENTS
PRESENTATION OF FINANCIAL AND OTHER INFORMATION
On January 30, 2018, the euro foreign exchange reference rate as published by the European Central Bank was EUR 1.00 = 1.2421 U.S. dollar (EUR 0.8051 per U.S. dollar).
EXCHANGE RATE INFORMATION
We file reports with the SEC giving economic data expressed in euro.
The following table shows the period end, average, high and low noon buying rates for euros, expressed in U.S. dollars per €1.00 for the periods and dates indicated, as reported by the Federal Reserve Bank of New York.
| | | Period
End | |
Average(1) | |
High | |
Low |
| Quarter ended December 31, 2017 | | 1.2022 | | 1.1856 | | 1.2022 | | 1.1577 |
| Year ended December 31, 2017 | | 1.2022 | | 1.1396 | | 1.2041 | | 1.0416 |
(1) The average of the noon buying rates on the last business day of each month during the relevant period.
The following table shows the high and low noon buying rates for euro, expressed as U.S. dollars per EUR 1.00, for each month from October 2017 through January 2018 (January 26, 2018), published on a weekly basis by the Federal Reserve Bank of New York.
| |
High | |
Low |
| October 2017 | 1.1847 | | 1.1580 |
| November 2017 | 1.1936 | | 1.1577 |
| December 2017 | 1.2022 | | 1.1725 |
| January 2018 (through January 26) | 1.2488 | | 1.1922 |
No representation is made that the euro or U.S. dollar amounts referred to herein or referred to in the documents, which incorporate this information by reference, could have been or could be converted into U.S. dollars or euro, as the case may be, at any particular rate.
RECENT DEVELOPMENTS
LANDWIRTSCHAFTLICHE RENTENBANK
Rentenbank Preliminary Results for the Year Ended December 31, 2017
The following information is derived from Rentenbank’s press release of January 25, 2018, announcing certain preliminary results for 2017. The financial figures in this section are based on preliminary, unaudited unconsolidated results for Rentenbank’s fiscal year ended December 31, 2017. Unless otherwise indicated, the financial figures in this section were prepared in accordance with German GAAP. Starting with the fiscal year ending December 31, 2017, Rentenbank has decided no longer to prepare audited, consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union, as it is not legally required to do so. Rentenbank will continue to prepare audited unconsolidated annual financial statements in accordance with German GAAP (German Commercial Code or HGB). Rentenbank expects its final, audited unconsolidated annual financial statements for 2017 to be announced at a press conference and published in April 2018.
According to preliminary figures, Rentenbank reported continued high demand for its promotional loans in the fiscal year 2017. The new promotional business nearly reached the prior year’s high level, totaling EUR 11.9 billion in 2017 (as compared to EUR 12.4 billion in 2016). New business in special promotional loans amounted to EUR 7.4 billion (as compared to EUR 7.7 billion in 2016). Renewable energy financing showed particularly strong growth.
Promotional loans for wind energy in strong demand
In the Renewable Energy promotional line, new business in special promotional loans increased significantly in 2017, growing by some 23% to EUR 2.4 billion (as compared to EUR 1.9 billion in 2016). This was mostly attributable to wind turbine finance. Rentenbank committed EUR 1.7 billion for wind energy projects, an increase of around 14 % compared with the previous year. While promotional loans for photovoltaic installations more than doubled to EUR 225 million, demand for the financing of biogas plants increased by a quarter to EUR 396 million.
Rentenbank’s Agribusiness promotional line is geared towards companies in agricultural upstream and downstream industries. New business in this promotional line increased by around 10% to EUR 1.1 billion (as compared to EUR 954 million in 2016), particularly driven by a strong financing need for machinery.
In contrast, new business in the Agriculture promotional line decreased by around 7% to EUR 2.2 billion (as compared to 2.4 billion in 2016). The decline was primarily due to falling demand for liquidity assistance loans as economic conditions in agriculture improved.
Promotional contribution remains stable
In 2017, Rentenbank used EUR 64.0 million to reduce interest rates on special promotional loans. Rentenbank also uses the distributable profit of EUR 15.3 million intended for distribution for promotional purposes, as prescribed by Rentenbank’s Governing Law. In addition, Rentenbank provided EUR 4.0 million as grants for the Research on Agricultural Innovation program. The promotional contribution for 2017, including other promotional contributions, totaled EUR 83.4 million (as compared to EUR 84.2 million in 2016).
Funding activities: EUR as the main issuance currency
In fiscal year 2017, Rentenbank raised EUR 12.4 billion of medium and long-term funding in the capital markets (as compared to EUR 12.7 billion in 2016). Of the nine issuance currencies, EUR was the largest source of funding, representing 57% (as compared to 32% in 2016) of total issuance. It was followed by USD with a share of 19% (as compared to 50% in 2016). The share of foreign investors amounted to 77% (as compared to 82% in 2016). Of the issuance volume, 39% (as compared to 47 % in 2016) was placed with commercial banks and 34% (as compared to 32% in 2016) with central banks. The Euro Medium Term Note program remained the most important medium and long-term funding instrument, contributing EUR 9.4 billion (as compared to EUR 9.0 billion in 2016) or 76% (as compared to 71% in 2016) of total funding.
Decline in operating profit
The preliminary operating profit before provision for loan losses and valuation decreased by 12% to EUR 223.8 million (as compared to EUR 254.4 million in 2016). This was attributable, among other things, to a 4.1%
decline in net interest income to EUR 305.6 million (as compared to EUR 318.7 million in 2016). This reflects the large number of maturities with attractive margins that can no longer be achieved in new business. Administrative expenses increased by 13.4% to EUR 69.3 million (as compared to EUR 61.1 million in 2016), mostly owing to rising expenses for IT projects, personnel, and banking supervision.
After provision for loan losses and valuation as well as allocation to reserves, the Board of Managing Directors expects to report net income of EUR 61.0 million for 2017 (as compared to: EUR 59.0 million in 2016).
Growth in total assets
According to initial calculations, total assets amounted to EUR 90.8 billion at year-end 2017 (as compared to EUR 86.3 billion at December 31, 2016). Loans and advances to banks increased to EUR 60.5 billion (as compared to EUR 57.8 billion at December 31, 2016). In contrast, the securities portfolio decreased to EUR 15.9 billion (as compared to EUR 17.8 billion at December 31, 2016). Securitized liabilities rose to EUR 76.9 billion (as compared to EUR 70.0 billion at December 31, 2016). Equity as reported on the balance sheet, plus the fund for general banking risks, increased to EUR 4.4 billion (as compared to EUR 4.3 billion at December 31, 2016).
Solid capital base
While Rentenbank previously also prepared voluntary consolidated financial statements in accordance with IFRS, it will only prepare annual financial statements in accordance with the provisions of the German Commercial Code (HGB) from the fiscal year 2017 onwards. Therefore, Rentenbank’s capital ratios, which were reported for 2016 pursuant to IFRS, are now reported in accordance with German GAAP. Compared with the previous year, Rentenbank continued to strengthen its solid capital base in 2017. As of December 31, 2017, the Common Equity Tier 1 capital ratio (reported in accordance with German GAAP) was 27.8% and the total capital ratio 29.7%.
New Business
| Promotional business | 2017 | | 2016 | | Change in % |
| | (EUR million) | | |
| Special promotional loans | 7,436 | | 7,687 | | -3.3 |
| Of which: | Agriculture | 2,211 | | 2,383 | | - 7.2 |
| | Rural development | 1,797 | | 2,433 | | - 26.1 |
| | Renewable Energy | 2,358 | | 1,914 | | 23.2 |
| | Agribusiness | 1,054 | | 954 | | 10.5 |
| | | | |
| Registered bonds / Promissory notes | 2,520 | | 2,278 | | 10.6 |
| Securities | 1,906 | | 2,479 | | - 23.1 |
| | | | | | |
| Total new promotional business | 11,862 | | 12,444 | | - 4.7 |
| | | | | | |
| Funding of promotional business | | | | | |
| | (EUR billion) | | |
| Medium and long-term funding | 12.4 | | 12.7 | | - 2.4 |
| Of which: | Euro MTN | 9.4 | | 9.0 | | 4.4 |
| | AUD MTN | 1.2 | | 0.5 | | 140.0 |
| | Global bonds | 1.1 | | 2.8 | | - 60.7 |
Balance Sheet
(in accordance with the German Commercial Code (HGB))
| | December 31,
2017 | | December 31, 2016 | |
Change in % |
| | (EUR billion) | | |
| Total assets | 90.8 | | 86.3 | | 5.2 |
| Loans and advances to banks | 60.5 | | 57.8 | | 4.7 |
| Loans and advances to customers | 6.9 | | 6.0 | | 15.0 |
| Securities portfolio | 15.9 | | 17.8 | | - 10.7 |
| Securitized liabilities | 76.9 | | 70.0 | | 9.9 |
| | | | | | |
| | (EUR million) | | |
| Equity reported on the balance sheet | | | | | |
| plus fund for general banking risks | 4,445 | | 4,311 | | 3.1 |
Income Statement
(in accordance with the German Commercial Code (HGB))
| | | 2017 | | 2016 | | Change in % |
| | | | (EUR million) | | | | | | | | | |
| Net interest income | | | 305.6 | | | | 318.7 | | | | -4.1 | |
| Administrative expenses | | | 69.3 | | | | 61.1 | | | | 13.4 | |
| Operating profit before provision for loan losses and valuation | | | 223.8 | | | | 254.4 | | | | -12.0 | |
| Net income | | | 61.0 | | | | 59.0 | | | | 3.4 | |
Promotional Contribution
| | 0127 | | 2016 | | Change in % |
| | (EUR million) | | |
| Promotional contribution | 83.4 | | 84.2 | | - 1.0 |
| Of which: | Interest rate reduction for special promotional loans | 64.0 | | 66.4 | | - 3.6 |
| | Distributable profit | 15.3 | | 14.8 | | 3.4 |
| | Grants for "Research on Agricultural Innovation" | 4.0 | | 3.0 | | 33.3 |
| | Other promotional contributions | 0.1 | | - | | - |
| | | | | | | |
RECENT DEVELOPMENTS
THE FEDERAL REPUBLIC OF GERMANY
Overview of Key Economic Figures
The following economic information regarding the Federal Republic is derived from the public official documents cited below. Certain of the information is preliminary.
Gross Domestic Product (GDP)
Gross Domestic Product
(adjusted for price, seasonal and calendar effects)(1)
|
Reference period | Percentage change on
previous quarter | Percentage change on the same quarter in previous year |
| 3rd quarter 2016 | 0.3 | 1.8 |
| 4th quarter 2016 | 0.4 | 1.8 |
| 1st quarter 2017 | 0.9 | 2.1 |
| 2nd quarter 2017 | 0.6 | 2.3 |
| 3rd quarter 2017 | 0.8 | 2.8 |
| (1) | Adjustment for seasonal and calendar effects according to the Census X-12-ARIMA method. |
Germany’s gross domestic product (“GDP”) increased by 0.8% after price, seasonal and calendar adjustments in the third quarter of 2017 compared to the second quarter of 2017. Compared to the previous quarter, positive contributions came from foreign trade. Exports of goods and services increased by 1.7% compared to the second quarter of 2017. Imports in the third quarter of 2017 increased less markedly (+0.9%) than exports compared to the second quarter of 2017. Arithmetically, the balance of exports and imports thus had a positive effect on the gross domestic product growth. The final consumption expenditure of households and of general government remained rather stable at the level of the second quarter of 2017. In addition, capital formation showed a positive development (+0.4%) compared with the previous quarter. While gross fixed capital formation was up especially in machinery and equipment (+1.5%), it fell slightly in construction (–0.4%) compared with the second quarter of 2017, respectively.
In a year-on-year comparison, the German economy recorded positive growth. GDP in the third quarter of 2017 increased by 2.8% in price and calendar-adjusted terms compared to the corresponding period in 2016, following an increase of 2.3% in the second quarter of 2017 and 2.1% in the first quarter of 2017.
Source: Statistisches Bundesamt, Detailed gross domestic product results for the 3rd quarter of 2017, press release of November 23, 2017 (https://www.destatis.de/EN/PressServices/Press/pr/2017/11/PE17_422_811.html).
In 2017 as a whole, the economic situation in Germany was characterized by strong economic growth. According to preliminary calculations of the Federal Statistical Office, the price-adjusted GDP was 2.2% higher in 2017 than in 2016. The German economy has grown for the eighth year in a row. Compared with the preceding years, the growth rate accelerated once again. In 2016, the GDP had already risen significantly by 1.9%, and in 2015 by 1.7%. From a longer term perspective, German economic growth in 2017 exceeded the average growth rate of the last ten years (+1.3%) by almost one percentage point.
Positive contributions to growth in 2017 were primarily provided by domestic demand. Household final consumption expenditure rose by a price-adjusted 2.0% compared to 2016, while government final consumption expenditure was up 1.4%. The increase in price-adjusted gross fixed capital formation of 3.0%, in particular, was above average in 2017, reflecting increases in gross fixed capital formation in construction (+2.6%), machinery and equipment (+ 3.5%) and other fixed assets (including expenditure on research and development) (+3.5%) in 2017 compared to 2016. Gross capital formation, which among gross fixed capital formation includes changes in inventories, increased by 3.6% on a price adjusted basis in 2017 compared to 2016.
German exports continued to increase in 2017 on an annual average. Price-adjusted exports of goods and services increased by 4.7% in 2017 compared to 2016. The increase in imports was larger (+5.2%) in 2017 compared to 2016. Arithmetically, the resulting balance of exports and imports contributed 0.2 percentage points to GDP growth in 2017.
Source: Statistisches Bundesamt, German economy continued to grow strongly in 2017, press release of January 11, 2018 (https://www.destatis.de/EN/PressServices/Press/pr/2018/01/PE18_011_811.html).
Inflation Rate
Inflation Rate
| (based on overall consumer price index) |
Reference period | Percentage change on
previous month | Percentage change on the same month in previous year |
| December 2016 | 0.7 | 1.7 |
| January 2017 | -0.6 | 1.9 |
| February 2017 | 0.6 | 2.2 |
| March 2017 | 0.2 | 1.6 |
| April 2017 | 0.0 | 2.0 |
| May 2017 | -0.2 | 1.5 |
| June 2017 | 0.2 | 1.6 |
| July 2017 | 0.4 | 1.7 |
| August 2017 | 0.1 | 1.8 |
| September 2017 | 0.1 | 1.8 |
| October 2017 | 0.0 | 1.6 |
| November 2017 | 0.3 | 1.8 |
| December 2017 | 0.6 | 1.7 |
Compared with 2016, consumer prices in Germany rose by 1.8% in 2017. Between 2014 and 2016, the year-on-year-rates of price increase in each case were below one percent. The inflation rates as measured by the consumer price index ranged between 1.5% and 2.2% in the individual months of 2017. The marked increase in the year-on-year rate of price increase in 2017 was mainly due to energy prices, which increased by 3.1% in 2017 after having declined the previous three years, and food prices, which rose considerably by 3.0%. Excluding energy and food prices, the inflation rate would have been 1.4% in 2017.
Compared to December 2016, consumer prices as a whole increased by 1.7% in December 2017 Energy prices were up 1.3% in December 2017 compared to December 2016. The increase in energy prices thus slowed markedly (November 2017: +3.7%) and had only a small impact on the overall inflation rate. In December 2017, notable year-on-year price increases were recorded for heating oil (+4.0%) and electricity (+2.0%). In contrast, consumers paid less for gas (–2.6%). Excluding energy prices, the inflation rate would have been 1.6% in December 2017. Food prices in December 2017 were markedly higher (+3.0%) than in December 2016 and had an upward effect on the overall inflation rate. Overall, prices of goods (total) increased by 1.8% in December 2017 compared to December 2016. The prices of services (total) increased by 1.6% over the same period, which was mainly the result of the development of net rents exclusive of heating expenses (+1.7%).
Compared to November 2017, the consumer price index rose markedly by 0.6% in December 2017, reflecting seasonal price increases for package holidays (+20.1%) and air tickets (+4.7%). Food prices were up 0.8% in December 2017 compared to November 2017, while energy prices remained nearly unchanged (–0.1%).
Source: Statistisches Bundesamt, Consumer prices in 2017: +1.8% on the previous year, press release of January 16, 2018 (https://www.destatis.de/EN/PressServices/Press/pr/2018/01/PE18_016_611.html).
Unemployment Rate
Unemployment Rate
(percent of unemployed persons in the total labor force according to the
International Labour Organization (ILO) definition)(1) | |
Reference period | Original percentages | Adjusted percentages(2) |
| November 2016 | 3.9 | 3.9 | |
| December 2016 | 3.5 | 3.9 | |
| January 2017 | 4.0 | 3.9 | |
| February 2017 | 4.3 | 3.9 | |
| March 2017 | 4.0 | 3.9 | |
| April 2017 | 4.1 | 3.9 | |
| May 2017 | 3.6 | 3.8 | |
| June 2017 | 3.6 | 3.8 | |
| July 2017 | 3.6 | 3.7 | |
| August 2017 | 3.8 | 3.7 | |
| September 2017 | 3.5 | 3.7 | |
| October 2017 | 3.8 | 3.7 | |
| November 2017 | 3.4 | 3.6 | |
| (1) | The time series on unemployment are based on the German Labour Force Survey. |
| (2) | Adjusted for seasonal and irregular effects (trend cycle component) using the X-12-ARIMA method. |
The number of employed persons increased by approximately 617,000 persons, or 1.4%, from November 2016 to November 2017. Compared to October 2017, the number of employed persons in November 2017 increased by approximately 51,000, or 0.1%, after adjustment for seasonal fluctuations.
In November 2017, the number of unemployed persons decreased by approximately 180,000, or 10.7%, compared to November 2016. Adjusted for seasonal and irregular effects (trend cycle component), the number of unemployed persons in November 2017 stood at 1.57 million, which was a decrease of roughly 14,000 compared to October 2017.
Source: Statistisches Bundesamt, 44.7 million persons in employment in November 2017, press release of January 3, 2018 (https://www.destatis.de/EN/PressServices/Press/pr/2018/01/PE18_002_132.html); Statistisches Bundesamt, Genesis-Online Datenbank, Result 13231-0001, Unemployed persons, persons in employment, economically active population, unemployment rate: Germany, months, original and adjusted data (https://www-genesis.destatis.de/genesis/online/logon?sequenz=tabelleErgebnis&selectionname=13231-0001&zeitscheiben=2&leerzeilen=false).
Current Account and Foreign Trade
CURRENT ACCOUNT AND FOREIGN TRADE
| | | (balance in EUR billion)(1) |
| Item | | January to November 2017 | | January to November 2016 |
| Trade in goods, including supplementary trade items | | 248.6 | | 251.5 |
| Services | | –22.4 | | –23.0 |
| Primary income | | 48.6 | | 41.8 |
| Secondary income | | –47.2 | | –36.0 |
| Current account | | 227.6 | | 234.4 |
| (1) | Figures may not add up due to rounding. |
Source: Statistisches Bundesamt, German exports in August 2017: +7.2% on August 2016, press release of October 10, 2017 (https://www.destatis.de/EN/PressServices/Press/pr/2017/10/PE17_358_51.html).
Germany’s General Government Deficit/Surplus and General Government Gross Debt
According to provisional calculations of the Federal Statistical Office, the German Federal Government, federal states and municipalities as well as security funds (together, the general government) recorded a surplus of EUR 38.4 billion in 2017. When measured as a percentage of GDP at current prices, the surplus ratio of the general government was 1.2% for 2017.
Source: Statistisches Bundesamt, German economy continued to grow strongly in 2017, press release of January 11, 2018 (https://www.destatis.de/EN/PressServices/Press/pr/2018/01/PE18_011_811.html).
Other Recent Developments
German General Elections for the Bundestag
After preliminary negotiations among CDU/CSU, FDP and Bündnis 90/Die Grünen regarding the formation of a coalition failed, CDU/CSU and SPD conducted preliminary negotiations regarding the formation of a coalition from January 7 through January 12, 2018. Following approval by the SPD congress (Bundesparteitag) on January 21, 2018, coalition talks among CDU/CSU and SPD were initiated on January 26, 2018. Pending the formation of a new federal government, the pre-electoral federal government remains in office as an acting federal government to ensure continuity between governments pursuant to Article 69 section 3 of the German basic constitutional law (Grundgesetz).
Source: Bundesregierung, Frequently asked questions about forming a government, dated January 26, 2018 (https://www.bundesregierung.de/Content/EN/Artikel/2017/11_en/2017-10-24-faq-regierungsbildung_eng.html).
Independence Referendum in Catalonia
On October 1, 2017, Catalonia, a region in northern Spain that includes Barcelona and accounted for 19% of Spain’s GDP in 2016, held a vote on its independence in a referendum that has been declared unconstitutional by Spain’s constitutional court. According to the Catalan regional government, approximately 90% of the votes cast favored independence with an overall turnout of less than half of eligible voters. On October 27, 2017, Catalonia’s regional parliament voted to formally declare independence from Spain. On the same day, the extraordinary Council of Ministers approved initial measures provided for in application of article 155 of the Spanish constitution to recover legality in Catalonia and to restore its self-governance. These measures include, among other things, the removal of the Catalan regional government, the dissolution of the regional parliament as well as the calling of regional elections to be held on December 21, 2017. The German government does not recognize the unilateral declaration of independence by Catalonia’s regional parliament and supports the position of the Spanish government. For the European Commission, this is an internal matter for Spain that has to be dealt with in line with the constitutional order of Spain.
Sources: Bundesregierung, Nach “Referendum” in Katalonien, Bundesregierung hofft auf Deeskalation, press release of October 4, 2017 (https://www.bundesregierung.de/Content/DE/Artikel/2017/10/2017-10-04-katalonien.html); Instituto Nacional des Estadística, Spanish Regional Accounts - Base 2010, Table 1 (http://www.ine.es/en/daco/daco42/cre00/b2010/c17m_cre_en.xls); Bundesregierung, Nach “Referendum” in Katalonien, Merkel dringt auf verfassungskonforme Lösung, press release of October 19, 2017 (https://www.bundesregierung.de/Content/DE/Artikel/2017/10/2017-10-11-katalonien.html); Council of Ministers, “Neither the autonomy nor self-governance in Catalonia will be suspended”; but legality will be recovered, says Mariano Rajoy, Moncloa Palace, press release of October 21, 2017 (http://www.lamoncloa.gob.es/lang/en/gobierno/councilministers/Paginas/2017/20171021_councilministers.aspx); Bundesregierung, After the “referendum” in Catalonia, German government hopes for dialogue, press release of October 11, 2017 (https://www.bundesregierung.de/Content/EN/Artikel/2017/10_en/2017-10-11-katalonien_en.html;jsessionid=C9BE7D853C22D5079A4AB3BB08FD8083.s3t2); Extraordinary Council of Ministers, Government approves initial measures provided for in application of Article 155 of the Constitution (http://www.lamoncloa.gob.es/lang/en/gobierno/councilministers/Paginas/2017/20171028_councilmextra.aspx); Bundesregierung, Katalonien erklärt Unanbhängigkeit, Seibert: Sorge über erneuten Verfassungsbruch, press release of October 30, 2017 (https://www.bundesregierung.de/Content/DE/Artikel/2017/10/2017-10-27-katalonien-unabhaengigkeit.html); European Commission - Statement, Statement on the events in Catalonia, press release of October 2, 2017 (http://europa.eu/rapid/press-release_STATEMENT-17-3626_en.htm).
The European Union and European Integration
On December 15, 2017, the European Council reviewed the latest developments in the negotiations following the United Kingdom’s notification of its intention to leave the EU. The European Council decided that sufficient progress had been achieved on citizens’ rights, the dialogue on Ireland / Northern Ireland, and the financial settlement. On this basis, the European Council adopted draft guidelines to move to the second phase of negotiations relating to the arrangement of a transition period and the framework for the UK’s future relationship with the EU.
Sources: The European Council, European Council (Art.50), 15/12/2017, last reviewed on December 18, 2017 (http://www.consilium.europa.eu/en/meetings/european-council/2017/12/15/); The European Council, Brexit (Timeline giving an overview of the Brexit negotiations), last reviewed on December 15, 2017 (http://www.consilium.europa.eu/en/policies/eu-uk-after-referendum/).
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant Landwirtschaftliche Rentenbank has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized, at Frankfurt am Main, Federal Republic of Germany, on January 30, 2018.
| | | LANDWIRTSCHAFTLICHE RENTENBANK | |
| | | | |
| | | By /s/ Hans Bernhardt | |
| | | Name: Hans Bernhardt | |
| | | Title: Managing Director, | |
| | | Member of the Board of Managing Directors | |
| | | | |
| | | | |
| | | By /s/ Martin Middendorf | |
| | | Name: Martin Middendorf | |
| | | Title: Director | |
| | | | |
| | | | |
| | | | |
