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The interest payments here would be from the bond holders to the German state.
by mdemare 7y ago
The interest payments here would be from the bond holders to the German state.
- michaelt 7y agoRight, but if you issue a 10-year €x bond and spend the €x, in 10 years you have to repay the bondholders, which means you either have to have saved up €x over the intervening years, or you have to take out another loan of €x at the prevailing interest rate. Unless the state is expecting bond rates to remain negative indefinitely.