Dauerschuldverhältnisse

Dauerschuldver, a German legal term, translates to "long-term debt" or "perpetual debt" in English. It refers to a debt obligation that is not repaid at a specific maturity date, but rather continues indefinitely or for a very long period. These types of debts are characterized by periodic payments, such as interest, which are made to the creditor without extinguishing the principal amount.

Historically, Dauerschuldverhältnisse were more common in certain contexts, particularly with government or institutional financing. They differ from typical loan agreements where a principal sum is borrowed and then repaid over time. Instead, Dauerschuldver involves a continuous financial relationship.

Examples of arrangements that might be considered Dauerschuldver include certain types of perpetual bonds or annuities where regular payments are made, but the underlying capital is not intended to be returned. In modern finance, pure Dauerschuldverhältnisse in the strictest sense are less prevalent due to the desire for clear maturity dates and repayment structures. However, the underlying concept of ongoing payment obligations without a fixed principal repayment date can still be found in various financial instruments and contractual agreements. The legal implications and specific terms of a Dauerschuldverhältnis are determined by the governing contract and relevant national laws.