BERLIN (MNI) – German Economics Minister Rainer Bruederle said
Thursday that he is not worried about the recent drop of the euro’s
foreign exchange rate.
“That is not causing me worries,” Bruederle told reporters here.
“This is not unusual on foreign exchange markets,” he remarked, adding
that the effect of FX-movements is cushioned by hedging instruments.
The Minister noted that the recent euro drop was caused mainly by
Greek’s current financial woes. Bruederle said he hoped that the final
approval of financial aid for Greece due at tomorrow’s gathering of
Eurozone leaders will help “to channel” this problem.
The Minister stressed that Germany’s share of the aid package will
be limited to E22.4 billion.
Earlier today, German Finance Minister Wolfgang Schaeuble denied
reports that Germany’s share in the joint aid package might increase if
borrowing problems arise for a state which takes part in the aid
package.
He explained that a Eurozone country — which can only borrow on
markets at a rate higher than that offered to Greece under the aid
package — can ask to temporarily not take part in the aid efforts.
However, once its borrowing conditions improve, this Eurozone
country then has to make up for the loan tranches it did not participate
in, Schaeuble said.
“No state has to step in for the duties of another state,” he
stressed.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,M$X$$$,MT$$$$,MFX$$$,MFGBU$,MGX$$$,M$$FX$]
