Wednesday, July 13, 2011

Value for your investment - a 50% haircut? (iMarketsNews)


Eurogroup Plans Greek Bond BuyBack At 50% Of Face Value;Press

BERLIN (MNI) - The Eurogroup plans to give Greece money to buy back its bonds on secondary markets at an average of 50% of its face value, German business daily Financial Times Deutschland (FTD) reported Wednesday citing Eurogroup sources.
This would be a voluntary haircut and would replace previous plans for a participation of the private sector in the Greek rescue measures, the paper wrote.
The money for the bond buyback is to come from the European Financial Stability Facility (EFSF) and the new aid package for Greece would, thus, exceed the planned up to E115 billion, FTD reported.
According to the paper, the Eurozone finance ministers know that their plan will make additional support measures for Greek banks necessary which own many Greek bonds. This support will be included in the next aid package, the report said.

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