Monday, January 9, 2012

Greece debt: Merkel urges deal soon on second bailout

BBC News
January 9, 2012

An agreement with Greek bondholders must come soon for Greece to receive a vital second bailout, Germany's Chancellor Angela Merkel says.

"The second Greek aid package, including this [debt] restructuring, must be in place quickly.

"Otherwise it won't be possible to pay out the next tranche for Greece," she told a news conference.

Greece needs a second EU-IMF rescue to avoid a default on its debts and possible exclusion from the eurozone.

The rescue, worth 130bn euros (£107bn), would include a voluntary restructuring of Greek debt - meaning bondholders would have to write off 50% of the Greek bonds' value.

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