Ready to accept mandatory haircut on Greek debt by the EU - In Athens, the Dallara IIF - The focus of the Summit on 30 / 1, the second loan agreement of Greece and the Greek banks collaterals
11/01/12 -
00:58 Ready to accept involuntary - thus mandatory - Greek debt restructuring is reportedly the EU, according to recent information leak from European diplomatic sources.
But the paradox is that the same sources that haircut rather than 50% on Greek bonds. Recalled that haircut over 50% the process ceases to be voluntary and becomes mandatory. The information
BankingNews.gr | Online ????????? ????????? indicate that the haircut will move between 58% and 61%. The information comes from a bank involved in the negotiations.
These developments are rapid and that is why the Dallara o Director General of the IIF Institute of International Finance is rushed to Athens on Wednesday to meet with Prime Minister L Papademos and Finance Minister E. Venizelos.
Based sources to
finalize the agreement on PSI + within the week. "The restructuring of the Greek debt may be enforced," the Europeans.
According to the same officials, the issue of the second loan agreement of Greece, and the question of collaterals that Greek banks to the ECB to provide liquidity will be discussed during the deliberations of the Summit of European leaders on January 30.
What notes
BankingNews.gr | Online ????????? ?????????
Based on very well-informed source "negotiations are on track and maybe next Friday to have interesting developments regarding the PSI + and based on the last update was the final haircut that will be the holders of bonds seems to range between 58 % and 61 %....
In the coming days will determine the teleconference will finalize the terms of PSI + ».
Under the same source 'the catalyst ultimately it is the haircut that will range between 58% and 61%, but the level of participation in the PSI +.
If participation is 55% or 60%, the Greek government will be forced by Germany to implement collective action clauses that those who participated in the voluntary PSI + will attend mandatory.
In this case you are talking about bankruptcy in the euro.
But if the participation of institutional bondholders in Greek PSI + reaches or exceeds 75% then the default would be selective selective default »