55.5 billion euro accounting error

Log-lin graph showing an exponential pattern i...

The discovery and deletion of a 55.5 billion euro ($A74 billion) accounting error at a troubled bank under government protection should ease Germany‘s debt levels, the Finance Ministry reports.

German media were agog at the discovery, caused by a double booking of debt held by FMS Wertmanagement, the so-called “bad bank” created from the insolvent parts of HRE bank, which was nationalised in 2009.

Freeing up the cash means that German debt, as a percentage of gross domestic product (GDP), should slide from 83.7 per cent to 81.1 per cent, said the ministry on Saturday.

The ministry said the problem was caused, essentially, when staff subtracted funds when they should have added them.

via 55.5 billion euro accounting error