Wall Street Journal
January 9, 2012
Private investors holding Greek debt could be asked to accept a haircut of around 60% because a previously agreed 50% write-down is no longer seen as sufficient because of the deteriorating Greek economy, people with direct knowledge of the matter said Monday.
A senior euro-zone official with direct knowledge of the talks said the country's sovereign creditors including the International Monetary Fund, the 50% cut in the bond's nominal value will not be enough and that a cut closer to 60% will be needed to bring Greece's debt back to sustainable levels.
"But at this point the negotiations continue to be on a 50% cut as agreed in the October European Union Summit. Any change will have to come later with a new agreement between Athens and the private creditors," the official said.
In the meantime, Greece is trying to push creditors to accept more concessions – in ongoing negotiations under the current 50% haircut agreement.
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