Germany Bank Assn: No Greek Debt Relief Ahead Of Referendum

View Comments

BERLIN (MNI) – The German Banking Association (BDB) does not
believe that banks will actually carry out the 50% haircut on Greek
bonds before the Greek referendum on the bailout conditions has taken
place, BDB managing director Michael Kemmer said Wednesday.

“I don’t think that an actual bond swap — sealing the debt cut —
will take place before the referendum has been carried out,” Kemmer said
at a press conference here.

While the BDB head said he expects a “large majority” of banks to
agree to the 50% haircut on Greek bonds, he added that this willingness
“will be conditioned on a positive outcome of the Greek referendum.”

Kemmer said he believed that the Greek citizens will be “reasonable
enough” to approve of the bailout conditions in the referendum.

The banking representative said he does not expect any negative
impact on credit supply in the Eurozone from the uncertainties created
by the announcement of the Greek referendum.

Greece’s Prime Minister George Papandreou announced on Monday that
he will hold a referendum on the EU bailout deal, hinting that early
elections are possible if the referendum fails to win voters’ approval.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$X$$$,M$G$$$,MGX$$$,MT$$$$,MFX$$$,M$$CR$,M$Y$$$]

2011-11-02T10:10:02+0000

All|Economic Data

Market News International

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.