Friday, December 31, 2010

Greece In Talks on Extending Debt Repayment

Reuters/New York Times
December 31, 2010

Greece is in talks with commercial banks on extending the repayment of its outstanding debt, in line with a similar plan to stretch out paying back its EU/IMF bailout, an Athens weekly reported on Friday.

Fears that the overborrowed country may restructure its debt after the 110 billion euro emergency funding ends in 2013 are keeping yield spreads at high levels, despite the government's repeated assurances that no such move is on the table.

More than 70 percent of Greece's outstanding debt is held in foreign portfolios.

The Realnews paper said former European Central Bank Vice-President Lucas Papademos, who currently advises Prime Minister George Papandreou, was handling the talks with banks and funds holding the debt-ridden country's bonds.


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