Bundesbank chief warns Grexit would hurt budget

BERLIN – Bundesbank chief Jens Weidmann has warned Angela Merkel ’ s cabinet that a Greek exit from the euro zone would rip a hole worth billions of euros in the German budget, Handelsblatt German business reported daily yesterday citing government sources. The paper said Weidmann had warned that the

costs of a Grexit would hit Bundesbank profits, which flow into the budget. The paper also said a Greek exit from Bundesbank would mean losses would be greater than the ß14.4- billion (about R197billion) already put aside in provisions linked to euro crisis because it would make losses on Greek securities bought by the central bank.

“This would not be enough in the case of a Grexit, ” reported Handelsblatt, which did not specify its source. No one at the Bundesbank was initially available to comment. A spokesperson for the German government was also not available immedi– ately yesterday.