Debt re­struc­tur­ing on the ta­ble in Brus­sels

Kathimerini English - - Business & Finance -

In­ter­na­tional back­ers of a sec­ond bailout plan to ward off the threat of Greece de­fault­ing on its mas­sive debts are now study­ing a pos­si­ble “reschedul­ing,” the Euro­pean Com­mis­sion said yes­ter­day.

But great care would be taken to avoid spark­ing alarm on credit mar­kets, it said.

“We have been dis­cussing over the last days a Vi­enna-style ini­tia­tive,” said Amadeu Altafaj, spokesman for EU Eco­nomic Af­fairs Com­mis­sioner Olli Rehn, re­fer­ring to a 2009 deal in which banks agreed to push back dead­lines for re­pay­ments on loans to Ro­ma­nia.

“And in that con­text we have also ex­am­ined the fea­si­bil­ity of a vol­un­tary debt reschedul­ing or re­pro­fil- ing, of course on the con­di­tion, ex­tremely im­por­tant, that this would not cre­ate a credit event,” he said.

This echoed a warn­ing by Euro­pean Cen­tral Bank chief JeanClaude Trichet of a “se­lec­tive de­fault” af­fect­ing dif­fer­ent cred­i­tors, pub­lic and pri­vate, dif­fer­ently.

Mean­while, Ger­man Fi­nance Min­is­ter Wolf­gang Schaeu­ble urged the par­lia­ment in Ber­lin to back ad­di­tional aid for the heav­ily in­debted eu­ro­zone coun­try, adding that pri­vate cred­i­tor par­tic­i­pa­tion in a new pack­age was “un­avoid­able.”

Ger­many’s lower house, the Bun­destag, ap­proved a non­bind­ing res­o­lu­tion sup­port­ing ex­tra emer­gency loans to Greece that calls for bond­hold­ers to share the bur­den.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.