BERLIN (MNI) – German Chancellor Angela Merkel expects a haircut on
Greek sovereign bonds of between 50% and 60%, the leader of the
opposition Green party’s parliamentary group, Juergen Trittin, said
after having being briefed by Merkel on the results of Sunday’s EU
summit.
The European Financial Stability Facility’s (EFSF) funds are to be
leveraged to above E1 trillion, Trittin said.
Merkel told him and other parliamentary group leaders that this
will be achieved partly by having the EFSF insuring a fraction of bond
issuances of Eurozone members states and partly by using the help of
state funds or institutions like the IMF, the opposition parliamentarian
said.
A participation of the European Central Bank or the European
Investment Bank has been ruled out, Trittin confirmed.
Merkel put the recapitalization needs of German banks at about E5.5
billion, Trittin revealed.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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