Bundesbank posted a €19.2 billion loss for the first time since 1979

Bundesbank for the first time since 1979 announced a loss, it amounted to a record €19.2 billion last year. This was reported on February 25 in the official Telegram-channel "Bild in Russian" (recognized as a foreign agent in the Russian Federation).

"This means that for the fifth year in a row the bank will not be able to contribute funds to the state budget, which was previously an important source of income for the federal government," the publication explains.

It is noted that the main reason for this is the sharp increase in interest rates by the European Central Bank (ECB) starting in 2022. Then the Bundesbank's interest expenses increased, while revenues remained low.

At the same time, the ECB also announced the largest loss in its history - €7.9 billion, this "confirms the serious pressure on the financial system of the euro area," the publication specifies.

Nevertheless, according to the forecast of the European bank, by 2026, inflation in Germany will return to the target of 2%, which will help stabilize the economic situation.

Back in October last year, the head of the Bundesbank Joachim Nagel said that the decline in the German economy began in the spring of 2022. The problems in the German economy were also pointed out inside the country. In March 2024 Der Spiegel edition with reference to leading economists of Germany wrote that the economy is almost paralyzed.

In addition, in February Bloomberg, citing sources, reported that the weak German economy is dragging the countries of Eastern Europe to the bottom. The lagging economy of the FRG and the entire eurozone was named as the key risk of deterioration of experts' forecasts.