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rerum cognoscere causas
After the 50 percent haircut on the nominal value of the existing Greek bonds, creditors are destined to receive new bonds for the remaining 50 percent of their value, with 15 percent coming from the European Financial Stability Facility (EFSF) -- amounting to 30 billion euros -- and 35 percent from the Greek state.
Bank sources say that one of the proposals on the table concerns the reduction of the EFSF participation to just 10 percent, with the remaining 40 percent covered by new Greek bonds. This means some 10 billion euros will be released for the EFSF to be able to cover the Greek deficit if that is deemed necessary. On the other hand, that would entail a larger burden on the Greek debt than was originally calculated.
Bank sources say that one of the proposals on the table concerns the reduction of the EFSF participation to just 10 percent, with the remaining 40 percent covered by new Greek bonds. This means some 10 billion euros will be released for the EFSF to be able to cover the Greek deficit if that is deemed necessary. On the other hand, that would entail a larger burden on the Greek debt than was originally calculated.