New York Times
May 17, 2011
Confronting the looming prospect of a second bailout for Greece, European finance ministers insisted Tuesday on further deficit-cutting efforts from the government in Athens and acknowledged for the first time that the private sector could be included in a restructuring of Greek loans.
Two days of talks in Brussels ended with public concessions that the idea of “reprofiling” Greek debt, or voluntarily extending maturities without changing interest rates or the amount of the loan, was being contemplated, at least as a last resort.
For months, European officials have been wary of any discussion of private-sector involvement in the restructuring of Greek loans before 2013, fearing a negative reaction in the markets.
That taboo was broken by Jean-Claude Juncker of Luxembourg, who presides over the euro zone finance ministers’ meetings, when he said late Monday that he would not exclude “a kind of reprofiling.” Mr. Juncker then referred Tuesday to a “soft restructuring of Greek debt.”
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