Wednesday, September 28, 2011
Greece creditors in bail-out backlash
September 28, 2011
Greece’s private creditors have reacted angrily to suggestions that some eurozone countries want bondholders to suffer bigger losses than those agreed in the second bail-out of Athens.
Banks and other bondholders are resisting the idea by lobbying countries such as Germany and the Netherlands, where hardliners are pushing for private creditors to write down more than the current 21 per cent agreed in July’s €109bn Greek rescue, according to people close to the deal.
Reopening the deal would be “counter-productive”, said Charles Dallara, managing director of the International Institute of Finance, which has been co-ordinating the response of banks and insurers with large holdings of Greek bonds. “Everybody needs to stay focused and not be distracted.”
The backlash from bondholders came as Angela Merkel, German chancellor, warned Greece that its second bail-out might have to be reconsidered if deficit reduction targets were missed.
Posted by Yulie Foka-Kavalieraki at 9:35 PM