Germany benefiting financially from Greece’s debt

14 July 2017
307 Views

As Greece struggles financially with unemployment and cuts to wages and pensions, Germany has earned €1.3 billion on the various crisis loans to Greece over the past 10 years according to official figures.

Making up the handsome numbers is a loan of €22.3 billion made to Greece by state-owned German bank KfW. While only two thirds of the loan were accessed, after refinancing costs in seven years it has it has earned €393 million in interest, according to neoskosmos.

Meanwhile since 2015 the Bundesbank earned profits of €952 million on the Securities Market Programme (SMP), a bond-buying programme. Though no longer in operation, the bonds that were bought have continued to generate money for the European Central Bank, with €1.147 billion projected for this year alone and €901 for 2018, with Germany entitled to a quarter of the total sum.

While the profits are legal, politicians of the German opposition say that morally it is another matter entirely to profit over Greece’s financial struggle.

“The interest profits have to finally be paid to Greece,” said the Green Party’s Sven-Christian Kindler.

“It’s just not on that (Germany’s federal finance minister) Wolfgang Schäuble can reform the German budget with such interest profits.”

You may be interested

Avramopoulos: Schengen’s integrity is crucial
POLITICS
shares47 views
POLITICS
shares47 views

Avramopoulos: Schengen’s integrity is crucial

makis - Nov 23, 2017

The European Commissioner for Migration, Home Affairs and Citizenship, Dimitris Avramopoulos, was present in the Celebration of the entry into…

Bodies found on Lesvos belonged to Turkish family escaping Erdogan regime
GREECE
shares66 views
GREECE
shares66 views

Bodies found on Lesvos belonged to Turkish family escaping Erdogan regime

makis - Nov 23, 2017

The mystery of the identity of three bodies that had recently washed up on the shores of Lesvos at the…

PAO basketball player Nick Calathes sentenced to 6 months in prison
GREECE
shares46 views
GREECE
shares46 views

PAO basketball player Nick Calathes sentenced to 6 months in prison

makis - Nov 23, 2017

Greek basketball player Nick Calathes was sentenced to a 6-month prison term with a 3-year suspension after the 4th One-Member…

Leave a Comment

Your email address will not be published.