suffering a hangover from the 2012 crisis, has been pushed to the fore by expectations the ECB will need to raise limits on its bond purchases to keep its quantitative easing scheme on track. Kai Schaffelhuber, a partner at law firm Allen & Overy, said that if the ECB permitted itself to buy more than a third of a country’s debt it would make a restructuring of privately-held bonds more difficult, a move that could increase the likelihood of taxpayer rescues. In a debt restructuring, a quorum of investors has to agree the terms of a deal. The ECB cannot participate because it is forbidden from directly financing governments. “They (the ECB) should avoid a situation where they are holding so much (of a) debt that a restructuring be-
Greek retail sales by volume dropped 6.4 percent in May compared to the same month a year ago after a downwardly revised 2 percent slide in April, statistics service ELSTAT said yesterday. Retail sales were led lower by fuels, lubricants, apparel, footwear and supermarkets, the data showed. Data on GDP showed weakness in consumer spending in the first three months of the year, when the economy contracted by 0.5 percent compared to last year’s Q4. Consumption declined 0.5 percent quarter-on-quarter in January-toMarch. Tax hikes and capital controls have weighed on the sector.