The success of a second, EUR130 billion aid package for Greece cleared early Tuesday by euro-zone finance ministers depends on the reaction of private-sector investors to changes in the parameters for a "voluntary" swap of their Greek bond holdings, German Finance Minister Wolfgang Schaeuble said.
The finance ministers said that in coming days, Greece will start a debt swap that will ask private bondholders to accept a cut of 53.5% on the face value of their Greek bonds.
"All is still pending what the reaction of the private sector" will be, Schaeuble said at a news briefing after the finance ministers meeting.
Eurogroup finance ministers were gathering here Monday and early Tuesday looking to sign off on the new Greek aid deal to reduce Greece's debt level and allow it to stay in the euro zone.
Schaeuble also said he expects the International Monetary Fund to make a "significant contribution" to the second Greek aid package. He didn't say how high he expects that contribution to be.
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