Central Bank loses over Rs. 1.5 b by investing in junk Greek bonds!

Saturday, 7 July 2012 00:11 - - {{hitsCtrl.values.hits}}

The Central Bank has yesterday admitted that the country had lost around Euro 8.4 million (over Rs. 1.5 billion) by investing in Greek bonds.

This revelation was made to Committee of Public Enterprises (COPE) during a hearing yesterday in Parliament.

Central Bank Governor Nivard Cabraal who attended the meeting had admitted that the loss was following the monetary authority in 2011 investing in Bonds of Greece, the financially bankrupt Euopean nation which had to be bailed out recently.

In response to queries how much of funds had been invested in Greek Bonds, answers had been vague.

The Central Bank was summoned by COPE following a request made by UNP MP Ravi Karunanayake. to COPE Chief MP Dew Gunasekara.

The disclosure yesterday follows the main Opposition UNP questioning in Parliament several months back about the investments of Central Bank though originally the House was told that specific investments cannot be divulged.

Following the admission, the UNP expressed serious concern over the manner in which the monetary authority was managing the country’s reserves though among responses were “some you win, some you lose” akin to managing by luck or a play of roulette, UNP MPs alleged.