Lending money to Greece was not profitable, finance experts in Austria complained on Wednesday. The aid loan in the name of European Solidarity and other nice pink bubbles earned Vienna 112 million euros. For this Vienna gave a loan of 1.6 billion euros to the debt-ridden country in the years of bailout agreements and strict austerity programs.
Yet, the Austrian Finance Ministry considers the loan and the revenues form interests “a good deal.”
The Ministry of Finance disagrees with statements by financial experts that Greece’s aid to Austria was a loss, Austrian media report. In fact, Austria had collected by the end of 2017 from Greece by 99 million euros more interest than it had to pay for the loan passed on to the Greeks, reported the Ö1 “Journal at eight”.
In order to be able to give Greece a loan of just under 1.6 billion euros, Austria had to borrow itself and pay interest. Financial experts had assumed that Austria had to pay more interest on this loan so far than Greece had transferred interest payments to Austria.
According to the Ministry of Finance, by the end of 2017, Greece has transferred around 112 million euros in interest, while Austria has so far only had to pay 13 million euros for its loan.
Thus, the Ministry of Finance contradicts an expert who had assumed that Austria had paid for its loan so far more than 300 million euros in interest.
However, it is true that for Greece, the interest rates have been lowered and the term extended, which is why Greece’s aid has yielded less profit than expected.
PS I strongly support the idea the Greek government immediately applies for one more loan from Austria with an interest rate of let’s say 4.5 – 6.5 percent so that our Austrian friends can make a good profit like any common loan shark would love to.
BTW I was always thinking the EU countries used their own taxpayers’ money as they claimed in order to lend money to help Greece. Now the bailout program is out, the truth comes out: they borrowed money and subtracted the interest they paid from the interest Greece paid to them + profit.
Rest assure, we will hear of more truths now the program is over.
This 100M EUR probably excludes profits made through the Eurosystem as a consequence of the ECB’s SMP programme: http://www.positivemoney.eu/2018/07/ecb-smp-profits-billions-lost-for-greece/