MADRID (MarketWatch) -- The European Central Bank and national central
banks may be willing to take a haircut on the value of their Greek bond
holdings in a bid to try and keep Greece in the euro zone and lower its
debts, senior euro-zone officials told Reuters on Friday. The latest
attempt is a "last chance" to come up with some options to cut Greek
debts by an extra €70 to €100 billion, bring them to 100% of annual
economic output. The officials familiar with the discussions said a
favored route is for the ECB to bear the cost of any haircut, but that
may involve some banks and Europe's central bank itself needing
recapitalization. Officials said planning is in the early stages and no
formal discussions have been held. One of the options involves a 30%
haircut on those bondholdings.
No comments:
Post a Comment