GERMANY: GOVERNMENT AND BUNDESBANK SAY THEY ARE NEAR TO AGREEMENT ON GOLD RESERVES.

Record ID: 566045

  • Title: GERMANY: GOVERNMENT AND BUNDESBANK SAY THEY ARE NEAR TO AGREEMENT ON GOLD RESERVES.
  • Date: 3rd June 1997
  • Summary: BONN, GERMANY (JUNE 3, 1997) (REUTERS TELEVISION - ACCESS ALL) 1. GV/MV: GERMANY FINANCE MINISTRY/ SIGN (2 SHOTS) 0.15 2. MV: GERMAN FINANCE MINISTER THEO WAIGEL (WEARING SPECTACLES) AND BUNDESBANK PRESIDENT HANS TIETMEYER ARRIVE TO SPEAK TO REPORTERS/ WAIGEL SAYING: "WE HAD GOOD TALKS AND WE ARE ON THE WAY TO AN AGREEMENT" (GERMAN), TIETMEYER SAYING: "WE ARE INDEED, I HOPE THAT WE CAN COME TO AN AGREEMENT (GERMAN) 1.03 3. MCU: CAMERAMAN 1.06 4. GV: MOTORCADE LEAVES 1.20 Initials s.3 - p.3 Script is copyright Reuters Limited. All rights reserved.
  • Embargoed: 18th June 1997 13:00
  • Keywords:
  • Location: BONN, GERMANY
  • City:
  • Country: Germany
  • Reuters ID: LVA642GLGMRBAP3LPCPIZDHYJ0O7
  • Story Text: INTRO: German Finance Minister Theo Waigel and Bundesbank President Hans Tietmeyer have said they are near an agreement on government plans to revalue gold and currency reserves.

    -------------------------------------------------------------------- Waigel and Tietmeyer spoke briefly to journalists on Tuesday (June 30) after a meeting at the Finance Ministry in Bonn. Despite a shroud of secrecy, dozens of journalists were on hand as Waigel and Tietmeyer concluded their meeting.

    "We had good talks and we are on the way to an agreement," Waigel said.

    "We are indeed," Tietmeyer added. "I hope that we can come to an agreement." They declined to provide further details and walked quickly away.

    Chancellor Helmut Kohl's coalition are believed to have backed down on their controversial plan to revalue central bank assets after parliamentary deputies from Kohl's party sharply criticised the proposal.

    A source in the ruling coalition said protests from conservative Christian Democrats (CDU) deputies forced the coalition to retreat from the plan to revalue central bank reserves.

    Abandoning the plan to revalue the assets will mean that there is another 10 billion mark ($5.8 billion) hole in the 1997 budget, the official said. To fill that hole, the coalition was discussing privatisations, budget cuts and moderate tax increases.

    The Bundesbank has some 95 million ounces of gold in its reserves, valued at 13.7 billion marks ($8 billion) compared to a current market value of more than 55 billion marks.

    The central bank has said it was not in principle opposed to revaluing its gold reserves but insisted that the process should not take place until 1999, or at least not before the decision as to who will participate in monetary union.


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