German Finance Ministry: “Greece has paid back €360 million in interest”

Ministry document suggests that Germany is aware of how the austerity policy in Greece has failed


A report in the Rheinische Post reveals that the German Ministry of Finances has admitted the dramatic impact of the austerity policy in Greece, in its response to a question by Die Linke.

The German Ministry revealed that one in two young people in Greece is unemployed; the economy shrunk by 25% since 2009 and the debt has soared. Greece’s alternative, according to the German Ministry, would be bankruptcy, but this would have a very high adjustment cost.

Furthermore the document reports how the expectations from privatizations between 2010 and 2013 fell far from short – only 1 billion euros revenue compared to the expected 22 billion euros. The German Ministry further admits that the dramatic wage and pension cuts have caused an explosion of unemployment.

Die Linke MP Andrej Hunko commented that that German Ministry’s response was proof of how the policy observed in Greece caused further recession and poverty without improving the country’s finances. To this he cites statistics show that outstanding debts towards the Greek state increased from 46 billion euros in 2012 to 78 billion euros in 2014. The rescue policy, according toe Mr. Hunko, was an “abysmal failure”.

The newspaper report further notes that the Greek government has paid Germany back about 360 million euros in interest, while stressing that the German state has not lost a single cent so far. With the financial situation in Greece getting worse though, the German government expects to receive about 20 million euros on an annual basis.



– Die deutsche Regierung hat laut dem Berliner Finanzministerium bis Ende 2014 insgesamt 360 Millionen Euro an Zinsen für ihre Hilfskredite eingenommen. Österreich hat Griechenland bilaterale Kredite in der Höhe von 1,56 Milliarden Euro gewährt. Bis Ende vergangenen Jahres wurden von Athen 101,7 Millionen Euro an Zinszahlungen überwiesen. Österreich haftet darüber hinaus mit weiteren 4,3 Milliarden Euro für die Hilfskredite aus dem Euro-Rettungsschirm EFSF. 

[The German government has taken, according to the Finance Ministry in Berlin until the end of 2014 a total of 360 million euros in interest on its emergency loans. Austria has granted Greece bilateral loans in the amount of 1.56 billion euros. By the end of last year, 101.7 million euros was paid to interest payments of Athens. Austria is also liable with another 4.3 billion euros for emergency loans from the euro bailout fund EFSF.]


European banks were bailed out, not the people of Greece ! (At least 90% of the €252 billion Troika bailout loans to Greece has been spent on paying off reckless lenders, including British, French and German banks.)

(FIDH) Report unveils human rights violations stemming from austerity policy in Greece


6 comments on “German Finance Ministry: “Greece has paid back €360 million in interest”

  1. The article you are reading originally appeared in German in issue 34/2013 (August 19, 2013) of DER SPIEGEL.

    Profiteering: Crisis Has Saved Germany 40 Billion Euros

    Germany is profiting from the debt crisis by saving billions of euros in interest on its government debt, which has enjoyed a steep drop in yields due to strong demand from investors seeking a safe haven.

    According to figures made available by the Finance Ministry, Germany will save a total of €40.9 billion ($55 billion) in interest payments in the years 2010 to 2014. The number results from the difference between actual and budgeted interest payments.
    The information was released in response to a parliamentary inquiry from Social Democrat lawmaker Joachim Poss.

    On average, the interest rate on all new federal government bond issues fell by almost a full percentage point in the 2010 to 2014 period. Financial investors regard Germany as a particularly safe creditor because of its solid state finances.

    The interest rate savings combined with unexpectedly high tax revenues generated by the strong economy have also led to a decline in new borrowing. Between 2010 and 2012, the German government issued €73 billion less in new debt than planned.

    The Finance Ministry is trying to maximize the benefits of the low interest rates by placing more longer-term bonds at favorable rates. Between 2009 and 2012, the proportion of short-term debt issues with maturities of less than three years fell to 51 percent from 71 percent.

    According to the Finance Ministry, the costs of the euro crisis for Germany have so far added up to €599 million.


  2. IMF has made €2.5 billion profit out of Greece loans

    Ahead of the payment of €462 million by Greece to the IMF on Thursday 9 April, figures released by the Jubilee Debt Campaign show that the IMF has made €2.5 billion of profit out of its loans to Greece since 2010. If Greece does repay the IMF in full this will rise to €4.3 billion by 2024.

    Christine Lagarde, Managing Director of the International Monetary Fund. Photo: IMF Staff Photographer/Michael Spilotro

    The IMF has been charging an effective interest rate of 3.6% on its loans to Greece. This is far more than the interest rate the institution needs to meet all its costs, currently around 0.9%. If this was the actual interest rate Greece had been paying the IMF since 2010, it would have spent €2.5 billion less on payments.

    Out of its lending to all countries in debt crisis between 2010 and 2014 the IMF has made a total profit of €8.4 billion, over a quarter of which is effectively from Greece. All of this money has been added to the Fund’s reserves, which now total €19 billion. These reserves would be used to meet the costs from a country defaulting on repayments. Greece’s total debt to the IMF is currently €24 billion.

    Tim Jones, economist at the Jubilee Debt Campaign, said:

    “The IMF’s loans to Greece have not only bailed out banks which lent recklessly in the first place, they have actively taken even more money out of the country. This usurious interest adds to the unjust debt forced on the people of Greece.”

  3. (Reuters) Analysis: What taxpayer bailouts? Euro crisis saves Germany money

    By Jan Strupczewski

    BRUSSELS | Thu May 2, 2013 5:04am EDT

    (Reuters) – Throughout Europe’s debt crisis, northern European leaders have often said they will not stand for taxpayers having to fork out for other countries’ problems, and the notion of “taxpayer-funded bailouts” has taken root.

    Yet despite three-and-a-half years of debt and banking turmoil, with bailouts totaling more than 400 billion euros, northern euro zone taxpayers have not actually lost a cent.

    What is more, governments in Germany, Finland, Austria, the Netherlands and France have saved billions of euros thanks to a sharp fall in how much they pay to raise money in financial markets since their borrowing costs have dropped steeply.

    But that has not prevented the image taking root in voters’ minds of hard working northern Europeans putting money on the line to rescue profligate, work-shy southerners, fuelling resentment and undermining Europe’s unity.

    η συνέχεια ΕΔΩ

  4. Jo Di Graphics
    Μου αρέσει η Σελίδα! · 12 ώρες ·

    Πως η πρόκληση της ελληνικής κρίσης βοήθησε το ΔΝΤ.
    Το 40% των κερδών του ταμείου από το 2010 (περί τα 3,6 δισ. €) προήλθαν από την Ελλάδα #Greece_saved_IMF

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