Sovereigns wrestle with debt impact of CSAs
Kiss of debt
First, the bad news: European countries may be misreporting or ignoring billions of euros of debt associated with their derivatives trades. Now, the good news: it’s not really debt.
According to Eurostat, the standard-setter for national statistics in the European Union (EU), cash collateral posted to debt offices and other sovereign entities against derivatives counterparty exposures has to be reported as a loan and included in each country’s debt statistics. Some countries, such as Belgium and
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