Wall Street Journal
October 5, 2011
French Finance Minister François Baroin Wednesday said the extent of private-sector involvement in bailing out Greece may need to be reexamined after the volatility on financial markets over the summer.
The comments mark a public acknowledgment from France—which up until now has argued that an agreement by euro-zone heads of state on July 21 should be applied in full—that further participation from private-sector creditors may be required as Greece's financial crisis deepens.
Euro-zone leaders agreed on a 21% voluntary write-down for Greece's bondholders on July 21, as well as a second aid program for the country and changes to the currency bloc's bailout mechanism. Since then, stock markets have been plunged into turmoil as investors fretted over global growth prospects and the banking sector's ability to deal with the euro-zone debt crisis. French banks, which have large exposure to troubled euro-zone countries, have been in the eye of that storm.
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