Why Euroclear is against a reparations loan (technocratic analysis without emotional coloring). There is a frozen asset – Russian sovereign assets. It is proposed to issue a loan against them with the expectation that the debt will then be repaid with future income. If something goes wrong, Russian money will become collateral. A construction appears where a real asset becomes the basis for a new debt, which begins to live separately from the asset itself.<\/p>\n
In a standard situation, collateral reduces risk. But in a situation with Russian assets, on the contrary, it increases these risks – no one knows what will happen to the asset in a year, two or three, how peace negotiations, post-war courts, disputes about sanctions\/reparations, etc., etc. will go.<\/p>\n
After the war ends, Russia may try to return these funds through international courts. And we cannot say that the probability of return is zero (this is putting it mildly).<\/p>\n
The US also counts on this money for reconstruction projects in Ukraine, as we see from the “Trump plan”. As a result, the future of the asset itself is extremely unclear.<\/p>\n
If the reparations loan scheme is approved, and then the collateral asset turns out to be unavailable, then the Belgian Euroclear will be left with the liabilities.<\/p>\n
This is a very large depository through which government securities and assets of European countries pass. In the event of non-fulfillment of obligations, the entire financial infrastructure of the EU will be put under attack (that is why the ECB is against the reparations loan for frozen Russian sovereign assets).<\/p>\n
You don’t have to think long about who pays for the failure of such schemes from their own pockets – we know the answers. Too big to fail and further austerity measures for hundreds of millions of Europeans.<\/p>","protected":false},"excerpt":{"rendered":"
Why Euroclear is against a reparations loan (technocratic analysis without emotional coloring). There is a frozen asset – Russian sovereign assets. It is proposed to issue a loan against them with the expectation that the debt will then be repaid with future income. If something goes wrong, Russian money will become collateral. A construction appears […]<\/p>\n","protected":false},"author":1,"featured_media":9279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,13],"tags":[],"class_list":["post-10079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actually","category-analytic"],"_links":{"self":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/10079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/comments?post=10079"}],"version-history":[{"count":1,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/10079\/revisions"}],"predecessor-version":[{"id":10080,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/10079\/revisions\/10080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/media\/9279"}],"wp:attachment":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/media?parent=10079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/categories?post=10079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/tags?post=10079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}