Wednesday, April 18, 2012

Bundesbank exposure to the Target2 imbalances

An audio presentation of 13th April, on this worrying topic is linked here.

A summary is that the Bundesbank is liable for only 27% of ECB losses on Target2. While it presently has reserves of €129 Billion before calls on German taxpayers will become necessary, loss provisions already made adversely affect German taxpayers with an increase from €4.1Billion to €7.7 Billion. The legal position is unclear should a country such as Greece leave the EMU as is the situation of a complete euro break up.

UPDATE A link with much more background on the TARGET2 debate has been provided in a comment it is here.



Anonymous Anonymous said...

The complete TARGET2-debate

10:05 PM  

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