Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

28 September 2011

FT: Greece creditors in bail-out backlash


Default: Change to:


Greece's private creditors have reacted angrily to suggestions that some eurozone countries want bondholders to suffer bigger losses than those agreed in the second bail-out of Athens.


Banks and other bondholders are resisting the idea by lobbying countries such as Germany and the Netherlands, where hardliners are pushing for private creditors to write down more than the current 21 per cent agreed in July’s €109 billion Greek rescue, according to people close to the deal.

Reopening the deal would be “counter-productive”, said Charles Dallara, managing director of the International Institute of Finance, which has been coordinating the response of banks and insurers with large holdings of Greek bonds. “Everybody needs to stay focused and not be distracted.”

The backlash from bondholders came as Angela Merkel, German chancellor, warned Greece that its second bail-out might have to be reconsidered if deficit reduction targets were missed.

Talking about the so-called troika of officials from the International Monetary Fund, European Commission and European Central Bank who are due to restart talks with the Greek government on Thursday, Ms Merkel said: “We must now wait to see what the troika finds out and tells us: do we need to renegotiate or don’t we need to renegotiate?”

Full article (FT subscription required)



© Financial Times


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment