50 bn EURO bond buyback fund being prepared for Greece?

Discussion in 'Economics' started by ASusilovic, Jul 6, 2011.

  1. About 20 banks and insurance companies are meeting in Paris to discuss the role of bondholders in a new Greek aid plan, said the Institute of International Finance, a banking-lobby group hosting the gathering. Talks began last week in Rome under the auspices of IIF Managing Director Charles Dallara, a former U.S. Treasury official.

    The next rescue package for Greece is more likely to succeed if it includes a plan to retire outstanding debt through organized buybacks, Dallara said yesterday. A buyback fund of about 50 billion euros could reduce Greece’s outstanding debt as a proportion of gross domestic product by as much as 20 percent, he said by phone.