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Opposition raises doubts about treasury windfall of €3bn

Sunday 17 February 2013

Opposition MPs have raised their doubts about a financial windfall amounting to €3bn revealed by finance minister Jeroen Dijsselbloem on Friday.

Christian Democrat MP Pieter Heerma described the windfall, which the minister said is derived from central bank guarantees, as 'creative accounting'.

He and ChristenUnie MP Arie Slob have called on parliament to critically examine the minister's claims. They want either a committee of experts or the national audit office to look into the origins of the windfall.

Dijsselbloem said the extra cash for the treasury will amount to €800m this year and €3bn over the entire cabinet period.

Technical

The windfall is derived from the profit the central bank makes on emergency loans to eurozone countries which are in trouble. The interest the bank earns on these loans was used to shore up its capital buffers because the loans are considered risky.

Now, however, the government has extended the central bank a guarantee of a maximum €5.7bn. This means the money earned on the loans can be paid to the state as profit instead.

The windfall was announced shortly after the government agreed a package of housing reforms with three opposition parties which will cost the cabinet some €1bn over the next four years.

© DutchNews.nl



 

Readers' Comments

Well, what should we expect.....after 'creative' meat labeling and 'creatively' forming the EU? No wonder Europe is the last place investors want keep their cash.

By Z | 17 February 2013 8:44 PM

And what exactly happened to the €2Billion extra they got from the 4G spectrum auction. The €2Billion they did not expect to get? What black hole has this disappeared down ???

By John Smith | 18 February 2013 8:34 AM

Hi,
Opposition raises doubts about treasury windfall of €3bn. Sounds like they rent something from the company they sold it to so they can lease it back to them.

By Terence Hale | 18 February 2013 9:28 AM

So, the windfall is intended to be used to shore up the bank's capital buffers because they're considered risky...but the government is considering this as profit and so can be paid to the state.

And thus the bank's capital buffers are left wanting, buffers that are there to protect against a future disaster. Better to leave the money in the buffers than spend it on politician's expense claims.

By H. | 18 February 2013 10:16 AM

 
 
 
 
 
 
 
 
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