Negotiations between Athens and its private creditors on restructuring Greece's debt could wrap up as early as Wednesday, bankers and officials said, but European Central Bank action to further reduce the burden is now seen as imperative and is proving a sticking point.
And there it is, you almost don't need to read any further. However if you do, you'll see that instead of the private sector taking a 50% loss as was the original starting point,
"Greek Finance Minister Evangelos Venizelos said the loss could even exceed 70 percent."
Yet even at a 70% haircut, it's still not enough and they see the need for the ECB and sovereign EU central banks to get involved in taking losses.
How could negotiations be wrapped up by Wednesday if they don't have a deal 1) with the ECB and 2) with each nation's own central bank?
Unless of course the private sector hedge funds are just willing to let this go through and then take Greece to court to try to recover full par, meaning 0% haircut.
Furthermore, why would US treasuries be rallying as a safe haven trade? This would also be about the 30th time we've heard negotiations are nearly complete. Here are just a couple of treasuries.
Sounds like more subterfuge, and what happened to the German demand that Greece give up its financial independence for any kind of deal on the next bailout tranche?
No comments:
Post a Comment