April 19, 2012
Insignificant news may sometimes look shocking. The announcement by the Bank of Greece that it will pay € 100 million dividend for 2011 is one of those news; it is not surprising that it has made headlines in German TV and newspapers.
How should owners of Greek State bonds who had just been forced to renounce two thirds of their claims appreciate such a news! They bail out a country that still can pay its central bank shareholders a dividend!
At first sight it is a scandal! At second sight it is much less so. Indeed, most of the dividend payments flow into the Greek Treasury, the State being the biggest shareholder. Only € 13 million go to private shareholders.
This being said, the news raises three questions:
Should European central banks which have transferred most of their traditional powers to the ECB maintain the status of private corporations whose shares are quoted at […]Author :