BERLIN (MNI) – The Eurogroup plans to give Greece money to buy back
its bonds on secondary markets at an average of 50% of its face value,
German business daily Financial Times Deutschland (FTD) reported
Wednesday citing Eurogroup sources.
This would be a voluntary haircut and would replace previous plans
for a participation of the private sector in the Greek rescue measures,
the paper wrote.
The money for the bond buyback is to come from the European
Financial Stability Facility (EFSF) and the new aid package for Greece
would, thus, exceed the planned up to E115 billion, FTD reported.
According to the paper, the Eurozone finance ministers know that
their plan will make additional support measures for Greek banks
necessary which own many Greek bonds. This support will be included in
the next aid package, the report said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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