Germany quids in after €55bn accounting error
An accounting error at a German bank means the government is €55bn richer than it expected
A FORTUITOUS accounting error will make Germany €55bn richer than it expected this year, after discovering the mistake at nationalised bank Hypo Real Estate.
The discovery knocks 2.6% off Germany’s debt-to-GDP ratio, pushing it down to 81.1%, the BBC reports.
Nationalised in 2009, HRE received €10bn in capital injections and £145bn liquidity guarantees, while the European Commission recently approved €175bn aid in return for a major cut in HRE’s activities.
It will now phase out all its activities outside its core bank, Deutsche Pfandbriefbank.