Saturday, April 30, 2011

Greece Trying to Extend Payment Period on Bailout Loans in Last Gasp Attempt to Avoid Restructuring

by Gregory White

Business Insider

April 30, 2011

Greece may attempt to push back interest payments on its bailout loans in an effort to avoid restructuring its debt, according to Expansion.

These payments make up a little more than a third of the country's 2012 interest charges.

The country's officials hope to sort out a deal at the EU summit in Athens on June 25.

One of Germany's top economic advisors, Lars Feld, says that restructuring is now "the only road to take." German official Clemens Fuest, who is a chairman at Germany's finance ministry, said that European Union officials were already discussing restructuring, according to Reuters.

The result of such restructuring could be incredibly damaging to Greece's banking sector, which could lose billions as a result. Banks across Europe retain significant exposure to both Greek sovereign debt and its banking sector.


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