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article imageBerlin still haunted by 450-year-old debt

By Kevin Fitzgerald     Jul 18, 2012 in World
Berlin - The German capital city of Berlin still owes a small German town repayment from a loan dating back to 1562. The debt combined with interest amounts to a total of $136.79 million.
Although certain publications have erroneously printed that the debt dates back 540 years, calculations confirm that the debt is actually from 450 years ago.
According to Reuters via Yahoo! News, a certificate found in a regional archive details a loan made by the small German town of Mittenwalde to the city of Berlin only 70 years after the famous expedition made by Christopher Columbus. The document states that Mittenwalde lent Berlin 400 guilders on May 28, 1562 with a condition that the loan would be re-payed with six percent interest per year.
International Business Times states that the debt is actually worth trillions of Euros in today's economy if inflation and compounded interest are taken into consideration.
MSNBC reports that Uwe Pfeiffer, the mayor of Mittenwalde, has attempted to ask Berlin to repay the debt, although Berlin has not made any attempts to do so. This is likely due to the fact that Berlin is already at a deficit of around 63 million euros.
More about Debt, Germany, Finances, Loan
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