Germany 55 bln euros richer after accounting error

29th October 2011, Comments 1 comment

Germany's debt is 55.5 billion euros lighter after an accounting error at the "bad bank" of a mortgage lender under government control, the finance ministry said Saturday.

Quoted by Suddeutsche Zeitung, the ministry confirmed an accounting double entry error on debt held by FMS Wertmanagement, which was set up after Hypo Real Estate (HRE) was nationalised in 2009.

The freed up cash means that the largest European economy's ratio of debt to gross domestic product is expected to drop from 83.7 to 81.1 percent.

An opposition MP, the Social Democratic Party's Thomas Oppermann, said the so-called "bad bank" was under the direct government and asked Finance Minister Wolfgang Schaeuble to offer an explanation.

"This isn't the kind of sum that a housewife stashes away in a biscuit tin and forgets," he said, accusing the ministry of allowing itself to be sidetracked by efforts to rescue the ailing eurozone.

© 2011 AFP

1 Comment To This Article

  • MM posted:

    on 30th October 2011, 01:19:40 - Reply

    I think Germany has many other 'hidden' moneys in its pocket beyond those earned during the 'Euro business'. Its not a coincident that this 5.5bns are discovered now and not a week or monthago. After Germany played the game of the co-victim as well leading the game found itself reacher all of a sudden based on a so called accountancy error. If somebody goes deeply in the past might discover that lot of money and fortune were lost and taken from lot of countries during the 1st and 2nd world war and it is said that destination was Germany and never found again (dissapeared). Is this a coincident too?