The FT is reporting, in a story entitled EU moves on Greek debt swap, that the Greek PSI restructuring could begin as soon as Friday and be completed by the end of the month.
But a decision on the second bail-out of Greece would be delayed until a European summit on March 2 and be approved only if leaders believed the Greek government had lived up to the “prior actions”
They add that the move is still being debated. Another problem is that they’re considering going ahead with the debt swap without the necessary funds to pay creditors immediately. This would make participation less likely.
This is all bad news for the euro and should be wiping out hopes of any sort of breakthough on tomorrow’s Eurogroup conference call.
