FRANKFURT (MNI) – Greece’s official creditors are considering
granting the fiscally troubled country another haircut on its sovereign
debt, the Financial Times Deutschland reported on Thursday, citing
sources.
According to the paper, Eurozone officials think such a step could
be necessary to restore the sustainability of Greek debt. The focus is
on the E53 billion of bilateral credits extended to Greece in the
context of its first bailout program – the so-called Greek Loan Facility
– from May 2010 through 2011, the FTD said.
The business daily reported that the IMF is urging such a haircut,
but like the ECB, would itself not participate.
A debt reduction deal with private creditors that was completed in
March cut Athens’ privately-held sovereign debt by about 70%, which left
official sector creditors holding a large share of Greek debt.
–Frankfurt bureau tel: +49-69-720-142. Email: dbarwick@mni-news.com
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