Alpha Japan Aib offer

Discussion in 'Investments' started by ABank, Dec 18, 2016.

  1. ABank

    ABank Frequent Poster

    Advice please

    AIB have offered investors who borrowed in Yen an opportunity to convert their yen loan to a euro one as if they had borrowed in Euro in the first place thus eliminating currency losses. Investors as part of the deal have to pay euro interest.

    My situation:

    I repaid the yen loan in 2012 and have been offered a refund of €50k.

    My refund does not provide any contribution for
    Legal costs
    Time value of money
    Additional euro interest I am being charged as part of Aib computation (I did not sign up for a euro interest rate)

    My question
    Aib letter stakes I should get legal advice before accepting the offer. Do I take this to mean that acceptance of the offer will prevent me from pursuing them for costs

    If this is correct am I taking too big a risk by letting the offer date pass? I am not a risk taker which is why I purchased yen to repay the loan at very unfavourable rates.
    I know a number of you are investors in the fund and am interested in your views
  2. Jim2007

    Jim2007 Frequent Poster

    I can't comment on the rest of your post except to say seek proper legal advice on how to proceed, given the figures involved. However the above sound to me like you are expecting to get the risk profile of one currency with the interest rate of the other which is not going to fly! At the time of making the decision, you had two loan choices Yen or Euro. As I understand it from you, this proposal would put you in the same position as if you had picked the Euro instead of the Yen from the start, in respect of the loan. Is that not the case? If not then what is the 50k in respect of? Just the interest difference?