May 31, 2011
The cost of borrowing for Greece and other peripheral economies fell amid increasing hopes that European policymakers are drafting a second bail-out package for Athens.
Germany has also helped boost sentiment by appearing to back away from demands that Athens restructure its debt, which the European Central Bank has warned could lead to contagion.
Jean-Claude Juncker, who heads the eurogroup of finance ministers, said on Monday that European leaders would decide on a new aid package by the end of June and ruled out a “total restructuring” of Greek debt.
His comments shored up the euro as well as the eurozone peripheral bond markets of Greece, Ireland and Portugal and, to a lesser degree, Italy and Spain.