Cash-strapped Berlin stalked by 450-year-old debt

The sleepy hamlet of Mittenwalde in eastern Germany could become one of the richest towns in the world if Berlin were to repay it an outstanding debt that dates back to 1562. A certificate of debt, found in a regional archive, attests that Mittenwalde lent Berlin 400 guilders on May 28 1562, to be repaid with six percent interest per year.           

Radio Berlin Brandenburg (translated via Reuters) reported on the debt, noting it would be worth "11,200 guilders today, which is roughly equivalent to 112 million euros ($136.79 million)."               

Apparently, Mittenwalde has been trying to reclaim the long-overdue debt since the early 19th century, but to no avail. Reportedly, they try every 50 years to claim their money.                

"This case shows that debts always catch up with you, no matter how old they are," Berlin's finance senator Ulrich Nussbaum reportedly told the Berliner Zeitung said Reuters.            

At this point in time Berlin, in substantial debt, couldn't repay the loan anyway, having previously sought out federal aid in 2006 when in 60 million euros of debt.

Media reports say the city is currently 63 million euros in the red.                       


REUTERS