FRANKFURT (MNI) – Hopes for a successful, voluntary private sector
involvement in Greek debt restructuring are dwindling, raising the risk
that the European Central Bank will have to take losses on its Greek
bond holdings, German weekly Die Zeit reported Wednesday, citing leading
European monetary policy-makers.
Hopes for a successful deal are dwindling as public sector demands
on the private creditors now amount to a 70% reduction in the net
present value of Greek bonds, which many creditors are unlikely to
accept voluntarily, the report said, citing official EU circles.
While the ECB could try to resist taking losses on its bonds in
case of a hard restructuring, high level central bankers consider such a
move too risky, die Zeit said. No final decision has yet been taken, the
newspaper said, citing these central bankers.
–Frankfurt newsroom +49 69 72 01 42; e-mail: jtreeck@marketnews.com
[TOPICS: MT$$$$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
