Friday, January 27, 2012

German wiseman says ECB should join Greek debt relief

Reuters
January 27, 2012

The European Central Bank should help alleviate Greece's debt burden by forgoing profits on its Greek bonds, but should not go as far as accepting losses, Wolfgang Franz, the head of a panel of German government economic advisers has told Reuters.

The ECB is under growing pressure to participate in Greece's debt restructuring as the International Monetary Fund has raised concern that contributions from private bondholders may not be enough to bring the country's debt down to sustainable levels.

Greece needs to strike a deal with creditors in the next couple of days to unlock its next aid package of 130 billion euro in order to avoid a chaotic default.

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