Bundesbank could suffer losses of over 14 billion euros! - Insane Visions

Bundesbank could suffer losses of over 14 billion euros!

bundesbank

The German central bank, Bundesbank, could suffer losses bigger than 14.4 billion euros, held in reserve for fluctuations, if Greece will exit the euro zone. The declaration was made by the president of the institution, Jens Weidmann, according to source quoted by German press.

According to the German daily Handelsblatt, cited by Reuters, Jens Weidmann told chancellor Angela Merkel ¬†that Bundesbank‘s loses will be bigger than the bank’s 14.5 million euros reserve. Still, both the German government and the bank refused to comment on the topic.

Greek voters were called to the polls this Sunday, in order to decide if they want to accept the conditions imposed by international lenders.

All 6 major TV stations in Greece give as certain the victory of “NO”. Also, according to a survey conducted for Scai TV, 51.5% of the votes were for “NO”. Alpha TV expects 49.5% for “NO” and 45.5% for “YES”, while another polling company, Metron, also predicts the victory of “NO”.

greek austerity

The country is technically insolvent, given the fact that they failed to pay the 1.6 billion euro tranche to the International Monetary Fund. With a total debt of over 320 billion euros, of which 65% was taken from countries in the Euro zone and the IMF, Greece’s situation is indeed a ‘threat’ for Bundesbank.

The Greek government has drafted a secret plan regarding the mobilization of military forces in major cities, if violence will occur this evening, after the end of the referendum on austerity measures.

It seems that the army keeps avoiding for a while any engagement in politics. Therefore, military mobilization for maintaining order is an extremely sensible situation in a country where a lot of military coups occurred over time.

We’re looking forward to seeing the results of the poll, as it will be pretty hard for Bundesbank to recover from a situation in which they have to pay more than they’re actually able to.

Andrei

A finance and tech news journalist with a passion for entrepreneurship and business. Feel free to message me on Twitter and Facebook.