Ger­man bank has made pro­vi­sions for bond losses

Kathimerini English - - BUSINESS & FINANCE -

BER­LIN (AP) – A Ger­man bank says it has made pro­vi­sions for losses on Greek sov­er­eign debt, cit­ing the like­li­hood that the coun­try will not fully re­pay its bonds. The pub­licly owned re­gional Nord/LB bank said in its first-quar­ter earn­ings re­port that it holds a com­bined 719 mil­lion eu­ros ($1 bil­lion) in Greek sov­er­eign and pri­vate debt. Nord/LB spokesman JanPeter Hin­richs yes­ter­day said the bank “slightly ad­justed the val­u­a­tion,” but he de­clined to spec­ify. The bank said in its full earn­ings re­port pub­lished on Tues­day that it views “a hair­cut on Greek sov­er­eign debt as likely and has there­fore taken pre­cau­tion­ary steps.” The bank’s stance re­flects in­creas­ing doubts whether Greece – which has re­ceived a 110-bil­lion-euro bailout from the Euro­pean Union and the In­ter­na­tional Mon­e­tary Fund – will even­tu­ally be able to re­pay all its sov­er­eign debt.

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