German town looks to cash in on Berlin debt

Published on 25/07/2012 00:00

The sleepy hamlet of Mitten-walde in eastern Germany could become one of the richest towns in the world if Berlin were to repay an outstanding debt that dates to 1562.

A certificate of debt found in a regional archive attests that Mittenwalde lent Berlin 400 guilders on 28 May, 1562, to be repaid with 6 per cent interest a year. According to Radio Berlin Brandenburg (RBB), the debt would amount to the equivalent of about £87 million. Adjusting for compound interest and ­inflation, the debt now lies in the trillions, by RBB’s estimates.

Town historian Vera Schmidt found the centuries-old debt slip in the archive, where it had been filed in 1963. Though the seal is missing, Ms Schmidt is certain the slip remains valid. “In 1893 there was a debate in which the document was examined and the writing was determined to be authentic,” she said.

The town has tried to ask Berlin for its money back. Such requests have been made every 50 years or so since 1820, but always to no avail.

Reclaiming the debt would bring significant riches to Mittenwalde, a seat of power in the Middle Ages, which now has a population of 8,800.

The town’s Romanesque church was once the provost seat for Paul Gerhardt, one of Germany’s most prolific hymn writers. Gerhardt, who lived there briefly in the 17th century, is the only noted Mittenwalde resident to date.

Ms Schmidt and Mittenwalde’s mayor, Uwe Pfeiffer, met Berlin’s finance senator, Ulrich Nussbaum, who ceremonially handed them a historical guilder from 1539. “Debts always catch up with you, no matter how old they are,” Mr Nussbaum told the Berliner Zeitung.

The debt-laden German capital would have difficulty meeting Mittenwalde’s demands anyway. According to a report released in June 2012, Berlin is already close to €63 billion (£49bn) in the red.