Greek Debt Swap Details Still Elusive
Two months ago the European Union, the IMF, and the government of Greece agreed to a deal that would shave about euro100 billion from Greeceās euro205 billion sovereign debt and provide the troubled country with euro30 billion backed by new…
Two months ago the European Union, the IMF, and the government of Greece agreed to a deal that would shave about euro100 billion from Greeceās euro205 billion sovereign debt and provide the troubled country with euro30 billion backed by new high-quality debt financed by the European Financial Stability Facility. IMF president Christine Lagarde and German chancellor Angela Merkel are scheduled to meet late today in an effort to get the deal done.
A report from Bloomberg News notes that ācreditors and authorities still need to agree on the coupon and maturity of the new bonds to determine the total losses investors would suffer.ā There is the possibility that the āhaircutā investors must take could exceed 50%, which would be certain to fire up litigation from creditors and could delay the next payment to Greece.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.