Germany conjures up cash

Posted on October 28, 2011 by


Germany “Raises” €55.5 Billion, or 1% Of Its Debt/GDP Ratio, Thanks To Derivative “Accounting Error”

The Telegraph reports that “Germany is €55bn richer than it previously thought because of an accounting error at state-owned bank Hypo Real Estate Holding. The mistake at “bad bank” FMS Wertmanagement, happened because collateral for derivatives wasn’t netted between the asset and liability side, an FMS spokesman said. As a result, FMS will only contribute about €161bn to Germany’s debt this year, down from €216.5bn in 2010.