For the Saturday morning coffee. Germany last month found 55 billion Euros, but reported it only last night. Due to collateral not being netted at FMS, Germany’s Debt will be 55 billion lower. This is simply great news, wonder if they can show Greece and the other PIIGS how to recalculate the netting between assets and liabilities? Maybe the mess is not that serious after all. With the zillion derivatives exposure globally, there is definitely nobody that has a clue what the aggregate picture looks like. From the Telegraph:
Of the €55.5bn lower debt, €31 billion is for 2011, the remaining €24.5 billion is for 2010, the FMS spokesman said, adding that FMS Wertmanagement corrected the figures in its six-month earnings report.
As a result, Germany’s 2010 debt-to-GDP ratio also drops, to 83.2% from the previous 84.2%, a finance ministry spokesman said.