The announcement by the European Central Bank that it has so far made €7.8bn in profits from its holdings in Greek government debt reveals the true nature of the so-called bailouts of Greek government finances that the EU leaders organised in return for massive austerity measures from 2012 onwards....Michael Roberts Blog
Beware the ECB bearing gifts for Greeks
Michael Roberts
5 comments:
Isn't that just deposited into the Greece Treasury account like the US does?
Would lower the Greece "deficit!" and allow (to them) more spending by the govt of Greece cet par...
Isn't that just deposited into the Greece Treasury account like the US does?
The article says its divided among the EU member states.
Probably population weighted i.e. In Germany's favor again...
On the ECB’s website one can read this:
The NCBs’ shares in this (ECB) capital are calculated using a key which reflects the respective country’s share in the total population and gross domestic product of the EU. These two determinants have equal weighting.
The net profit of the ECB shall be transferred in the following order:
an amount to be determined by the Governing Council, which may not exceed 20% of the net profit, shall be transferred to the general reserve fund subject to a limit equal to 100% of the capital;
the remaining net profit shall be distributed to the shareholders of the ECB in proportion to their paid-up shares.
Bank of Greece (Greece) 2.0332 %
Source: https://www.ecb.europa.eu/ecb/orga/capital/html/index.en.html
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