Via WSJ. This is a big deal and a surprise.
They won’t take any losses but we don’t know yet whether they will get back precisely what they were paid or if they’ll be allowed to keep some profit.
Schaeuble hinted at something like this earlier but no one else seemed to pick up on it, except for Jamie.
It’s a slight euro-positive because it makes the debt-swap deal more palatable for creditors. The downside is that it diminishes the EFSF lending capacity.
The question now is: will the EFSF take a haircut on those Greek holdings? If the answer is yes, then that’s a larger EUR positive because it brings down the Greek debt load. We’re pushing the session highs now at 1.3264.
