Home » today » Business » European Central Bank Reports First Loss in 19 Years: Implications and Future Outlook

European Central Bank Reports First Loss in 19 Years: Implications and Future Outlook

The European Central Bank (ECB) lost money last year for the first time in 19 years. This is reported by the Financial Times with reference to a press release from the ECB.

It is noted that the loss amounted to 1.3 billion euros and for the first time in the history of the ECB will be transferred to future profits.

Last year, the ECB’s net interest expenses amounted to 7.2 billion euros, compared with net interest income of 900 million euros a year earlier. The figure takes into account the full release of reserves in the amount of 6.6 billion euros to cover financial risks, without which the loss would have been much greater.

“The ECB’s increase in key interest rates to combat inflation in the euro area has led to an increase in interest costs on ECB obligations linked to floating interest rates. However, interest income on ECB assets has not increased to the same extent or at the same speed, since these assets mainly have fixed interest rates and long maturities,” the press release said, as quoted by Interfax.

The bank expects losses in the next few years.

How it was conveyed EADailystaff of the European Central Bank (ECB), as reported Turkish publication Sözcü, dissatisfied with the leadership of the president of the financial organization Christine Lagarde. According to the results of the survey, more than half of ECB employees negatively assess Lagarde’s speech in Davos.

Many believe that there is too much politics in Lagarde’s activities, but not enough communication with her own employees and real decisions in the monetary sphere of a united Europe.

2024-02-23 19:30:00
#European #Central #Bank #lost #money #time #years #EADaily

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.