Goldman’s regrets Greece involvement
(25 February 2010 – Europe) A senior executive at Goldman Sachs said that the public should have been given more information surrounding the currency deals that allowed Greece to hide the extent of its public debt.
Goldman Sachs, managing director, Gerald Corrigan, told a UK parliamentary committee that the bank only helped shave a modest amount from Greece’s official debt ratio.
Under terms of entry to the euro, member countries were permitted to run budget deficits of no more than 3 percent of GDP and a total national debt of no more than 60 percent.
Goldman Sachs disclosed details of the controversial currency swap that the Greek government engaged in, in December 2000 and July 2001, however insisted that it made no difference to the amount by which Greece breached the euro rules.
Governments go to some lengths to try to manage their budgetary deficit and public debt positions, Mr Corrigan told the Treasury Select Committee.
Goldman Sachs cut the country’s debt by €2.4 billion (A$3.62 billion), the bank has said that the ailing nation will pay Goldman Sachs back over time.
Greece’s budget deficit was 4.5 percent of GDP in 2001 because of the swaps, instead of 4.6 percent.
Under terms of entry to the euro, member countries were permitted to run budget deficits of no more than 3 percent of GDP and a total national debt of no more than 60 percent.
Goldman Sachs disclosed details of the controversial currency swap that the Greek government engaged in, in December 2000 and July 2001, however insisted that it made no difference to the amount by which Greece breached the euro rules.
Governments go to some lengths to try to manage their budgetary deficit and public debt positions, Mr Corrigan told the Treasury Select Committee.
Goldman Sachs cut the country’s debt by €2.4 billion (A$3.62 billion), the bank has said that the ailing nation will pay Goldman Sachs back over time.
Greece’s budget deficit was 4.5 percent of GDP in 2001 because of the swaps, instead of 4.6 percent.
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