BERLIN (MNI) – Germany’s private banks will contribute E3.2 billion
to the next financial rescue package for Greece, Finance Minister
Wolfgang Schaeuble said Thursday after talks with representatives of the
leading banks here.
Josef Ackermann, CEO of Germany’s largest private bank, Deutsche
Bank AG, said at a joint press conference with the minister, “We will
use the French proposal as a basis but will make some modifications to
it.”
President Nicolas Sarkozy detailed a plan on Monday under which
French banks are to reinvest half of the proceeds of maturing Greek debt
in new 30-year bonds, paying 5.5% interest plus a premium based on
Greece’s future GDP growth rates.
Asked if the rating agencies would accept that proposal, Ackermann
said, “we are naturally conducting a lot of talks with the rating
agencies and we are making good progress.”
Ackermann added that he was “confident that we will find a
satisfying solution.”
Schaeuble said he believed that Eurozone finance ministers will
find a solution for a new Greek aid package at their meeting this
Sunday.
In a joint declaration released today, the leading German private
banks said they currently hold just under E10 billion in Greek sovereign
bonds. Around 55% of these bonds have a maturity beyond 2020. Only some
E2 billion in bonds mature by 2014. This amount will be reinvested in
Greek bonds again, the banks said.
Another E1.2 billion will come from Germany’s “bad banks”,
Schaeuble said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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