Bundesbank gently eased euro
Euro on Friday , March 14 , walked away from the highs reached on the eve and 9:00 MSK traded at 1.3862 dollars in addition to large portions of statistics , players on Thursday drew attention to the report of the Bundesbank and its assessment of what is happening in the eurozone.
German central bank profits in 2013 . increased seven times compared with 2012. – Up to 4.6 billion euros against 664 million euros in 2012. The main source of income of the Bundesbank in 2013 . was interest income , which nevertheless decreased in comparison with 2012. – From 11 billion to 7.4 billion euros. The decrease in revenues this article influenced the ECB lowering interest rates in May and November 2013. ” Despite the drop in interest income , the Bundesbank was able to increase its profit in 2013 . Compared to 2012. Because he had no need to transfer additional funds into risk reserves,” – said the president Jens Weidmann regulator . Bank reserves generated by the case cover losses on overdue loans were not changed and remained at 14.4 billion euros.
Bundesbank President noted that last year weakened somewhat similar risks in connection with the reduction of refinancing loans and the fact that the bank reduced the amount of government bonds on its balance sheet . Y.Vaydmann also added that it would be wrong to reduce the provision for risks, as due to a decrease in the discount rate Bundesbank expects to earn less profit in 2014 . , And the result will be reduced and the available financial resources of the organization .
Head of the German central bank also stressed that the financial crisis, and the national debt will continue to have a decisive impact on economic development in 2013 . He believes that the country to which the crisis had the most significant impact , made visible progress on regulation of their economies, and confidence is gradually restored. At the same official noted that the continuing debt burden and structural problems in the euro area means that the European and global economies remain vulnerable to shocks. At the moment, given the current difficulties it would be premature to say that the national debt crisis is behind us , says Y.Vaydmann.
He noted that the growth of the world economy during 2013. accelerated again and this is partly due to expansionary monetary policy. In this process, it is very likely that German GDP growth also increase in 2014 and 2015 . Y.Vaydmann added that some time the development of the German economy is supported mainly internal activity : factors such as the relatively low level of unemployment, the continued growth of employment and salary increase before tax combined with low interest rates, contributed to , in particular, housing activity .
Traditionally conservative view of the Bundesbank on the situation can be called moderately optimistic compared with overoptimistic attitude on the currency market . German Central Bank notes the decrease in risk in the eurozone, but nonetheless cautious in their assessments. To report a mild euro one of the key links in the currency bloc has played its role: it at least a little , but moved away from multi-month highs .
