German bank has made provisions for bond losses
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.