Bundesbank Challenges Vicuna on ECB’s Greek Profit, Reuters Says

The Bundesbank disputes the view of European Central Bank chief counsel Antonio Sainz de Vicuna that the ECB has a say in how national central banks use profits from Greek government bond holdings, Reuters reported, citing an unidentified Bundesbank official.

The ECB has no powers in that area and national central banks take those decisions independently, Reuters quoted the official as saying. Earlier, de Vicuna told Handelsblatt newspaper that there is “the option to mark such profits with an appropriation, according to which shareholders of national central banks use the profits” for example “for Greece’s debt consolidation.”

While that would be a political decision, the Eurosystem, comprising the ECB and the national central banks of the euro area, “might have to agree to ensure the procedure is in line with the law,” he said, according to the newspaper.

To contact the reporters on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@Bloomberg.net.

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