July 16, 2011
Greece could cut its public debt by 20 billion euros ($28.3 billion) if it bought back sovereign bonds at market prices as part of a rescue deal, German weekly magazine der Spiegel reported, citing finance ministry sources.
Under this scheme, the European Financial Stability Facility (EFSF) would give Greece money to buy back bonds from private investors, the magazine said on Saturday in a release ahead of publication.
A bond buyback is more likely than the other options that euro zone finance ministers have discussed, der Spiegel said, citing unidentified sources in the ministry. Those options have included a bond swap with a hair cut and the extension of maturities of existing debt.
"Both models are considered less likely to lead to a consensus than the buyback program, according to information from the ministry," the magazine said.
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