Business Insider
December 13, 2011
We've speculated before that Greece would have difficulty finding enough investors willing to voluntarily take a 50% haircut on their bond holdings (a main facet of the second bailout deal). It looks like that prediction is fast becoming a reality.
A slew of headlines out this morning amid meetings between the Greek government and private sector bondholders suggest that the likelihood of the swap going through on a "voluntary" basis is slimming.
Sources told Dow Jones that 90% participation in the deal—a stipulation the Greek government proposed months ago and appears to be standing by—"looks difficult" to achieve. Without high participation, the haircut deal will be ineffective as it will not adequately reduce Greece's debt burden to a sustainable level.
More
No comments:
Post a Comment