Reuters
July 12, 2011
The chief executive of Commerzbank, Germany's second largest lender, called for a 30 percent haircut on Greek debt followed by a rollover into euro zone-guaranteed 30-year bonds.
In an editorial published in German daily Frankfurter Allgemeine Zeitung on Tuesday, Martin Blessing said a solution needed to include Portugal and Ireland since they are "not much better off" than Greece.
Blessing, head of the German lender which is 25 percent owned by the German government, said Italy and Spain are also in danger and nobody can foresee whether other countries will be affected.
In a piece entitled "Rendezvous with reality," Blessing called for creditors to take a 30 percent haircut on Greek bonds, and to exchange them for new 30-year securities with an interest rate of 3.5 percent and a collective guarantee on the part of the euro zone countries.
"Greece needs debt restructuring or partial debt relief," Blessing said.
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Read the article by Martin Blessing (in German)
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