Wall Street Journal
October 7, 2011
A slew of comments this week by the EU and the International Monetary Fund that private holders of Greek debt may need to fork out more money in Greece’s yet-to-be-approved second bailout package is the clearest indication yet that the debt-ridden Mediterranean country is being prepared for an orderly default.
In July, Greece’s international creditors—the EU, IMF and the European Central Bank—agreed on a €109 bailout loan on top of which private-sector creditors are expected to contribute roughly another €13.5 billion by agreeing to a 21% writedown on their holdings of Greek bonds.
But the exercise is only expected to cut Greece’s €350 billion debt by less than 5%.
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