Target2 Imbalances Grow: ECB Overtakes Greece As Third Largest Debtor

Target2 imbalances in the eurozone continue to mount. The ECB itself now has the third largest negative balance following Italy and Spain.

Target2 is a measure of capital flight. Those needing a further explanation of Target2 may wish to consider Reader From Europe Asks “Can You Please Explain Target2?”

Data for the following charts and tables is from ECB Target Balances. Neither the ECB nor Eurozone officials likes to discuss these numbers for obvious reasons.

Although it’s June, the latest data is for April.

Here is the ECB’s chart with my annotations in blue.

 

Tracking 20 lines by colors is more than a bit problematic. The following chart breaks out the key creditors and debtors.

Largest Creditors and Debtors

 

Growing Negative Imbalance at the ECB

 

How Does the ECB Get a Negative Balance?

Pater Tenebrarum at the Acting Man blog explains via email: