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BCL accused of incorrect calculations
Economics

BCL accused of incorrect calculations

14.03.2012 From our online archive
The Luxembourg Central Bank, BCL, faces allegations that it has not calculated valuations of securities accurately from German newspaper “Spiegel”.

(ADW) The Luxembourg Central Bank, BCL, faces allegations that it has not calculated valuations of securities accurately from German newspaper “Spiegel”. In response a BCL spokesman said on Tuesday that the procedure used is entirely in accordance with European Central Bank regulations.

Portuguese banks had deposited 63 bonds in the BCL as securities to obtain central bank money. These bonds were correctly classified as "eligible" and the process was handled properly, state the BCL.

The editors of the “Spiegel” pointed out that eleven securities at BCL no longer correspond to the list of eligible securities requirements. The BCL should therefore remove them from this list. "The bank has listed none of these eleven cases. There is no damage," replied the BCL on Tuesday.

The reason for the discrepancy seen as an error by Spiegel, is due to data provided to BCL from a private data provider. Up until recently data was updated weekly, meaning that degraded or default payment ratings sometimes appeared late in the listings. “Now, BCL has changed the system to daily updates, so such errors should no longer occur” stated the bank.