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Thursday, 5th February 2004 (4447 views)

The use of gold reserves to finance research and development projects was suggested this week by the German chancellor.<BR/><BR/>In a recent interview, Chancellor Gerhard Schroeder said gold reserves at Germany's central bank, Bundesbank, could be used as a type of fund.<BR/><BR/>With about 3,400 tonnes, the Bundesbank is the second largest holder of gold reserves in the world.<BR/><BR/>Mr Schroeder explained to Business Day: 'Perhaps we could put part of the Bundesbank's gold reserves into a foundation, from which the proceeds could solely be used for research and development. But that decision would be up to the Bundesbank.'<BR/><BR/>Currently having 'intense discussions with the finance industry' Mr Schroeder claimed he wanted to make sure as little jobs as possible were lost in research and development sectors, following widespread government cutbacks.<BR/><BR/>The issue of using gold reserves in such a way is a recurring theme in Germany, but in the past the Bundesbank has argued the reserves should not be used to finance the federal budget.

 

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