GO
Loading...

Greek Bondholders May Face 70% 'Haircut': Source

AP
Monday, 30 Jan 2012 | 12:59 PM ET

A person familiar with the negotiations to slash Greece's massive debt said private creditors participating in the deal would face an overall loss on their bondholdings of around 70 percent.

CNBC.com

Athens and representatives of banks and other investment funds holding Greek government bonds over the weekend came close to a final deal designed to make Greece's debt sustainable.

That is a precondition for further bailout money for Greece from the eurozone and the International Monetary Fund .

The person said Monday that the 70 percent loss was produced by cutting the bonds' face value in half, reducing the average interest rate to less than 4 percent and pushing repayment of the bonds decades into the future.

The person spoke on condition of anonymity because the talks are confidential.

Featured

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Jan Dunning, CEO of St Petersburg-headquartered hypermarket chain Lenta, says the situation in Ukraine has had no impact on the group, as consumer confidence remains unaffected in Russia.

  • Vincent Deluard, European strategist at Ned Davis Research Group, says the strong euro is a problem for the region's companies, especially for the large exporters.

  • European shares closed higher on Thursday as investors brushed aside concerns regarding Ukraine and focused instead on Wall Street earnings and the latest U.S. jobs data.