July 1, 2011
Germany's major banks agreed to reinvest the proceeds of some of their maturing Greek bonds, removing another hurdle toward a broader agreement on a new aid package for Athens.
The German banks said they would accept new notes with longer maturities for bonds that currently fall due by 2014, a deal that will affect some €3.2 billion ($4.6 billion) in private and publicly held debt. The full details of the arrangement have yet to be decided, however.
The agreement will be based on a proposal earlier this week by French banks.
Greece has €64 billion of bonds coming due in the next three years, among other liabilities, and euro-zone leaders hope that private lenders will voluntarily take on longer maturities in order to improve the country's battered finances.
More
No comments:
Post a Comment