A Realistic Valuation: Alternative Estimates of the Loan’s Present Value

Nicos Christodoulakis

Chapter 5 in Germany’s War Debt to Greece: A Burden Unsettled, 2014, pp 41-48 from Palgrave Macmillan

Abstract: Abstract Chapter 5 argues that the current value of the Occupation Loan can be properly determined only if it is considered in a market that remained uninterrupted throughout the period 1944–2012. The obvious choice is the US market and the current value is obtained by applying the yields on ten-year bonds. An alternative valuation is obtained by considering the Occupation Loan as a fraction of war-time German GDP and projecting the same portion in the current GDP of unified Germany, while another one is by assuming parity between the Reich Mark and the Deutsch Mark similar to that endorsed between the latter and the East German Mark after the reunification.

Keywords: Interest Rate; Corrective Justice; Nicomachean Ethic; Treasury Bill; Nominal Parity (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-44195-9_5

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DOI: 10.1057/9781137441959_5

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