Bundesbank Tells German Heta Creditors: Expect to Lose Half
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German banks should expect to lose at least half of their investments in bonds of Austrian bad bank Heta Asset Resolution AG and make the appropriate provisions, the Bundesbank director responsible for bank supervision said.
“I think this situation has to be taken seriously by the German banks,” Andreas Dombret, also a member of the board of the European Central Bank’s Single Supervisory Mechanism, said in an interview in Johannesburg on Friday. “It’s advisable and recommendable to take provisions on this, and if I were to put a number on this I would say it should be a minimum of a 50 percent provision for potential losses.”