Greek debt burden to be reduced without a haircut, report says‏

21:35 14/4/2014 - Πηγή: Matrix24

Greece's European partners are preparing to lighten the country's debt without a haircut of loans, but through extending their repayment in the distant future from 30 to 50 years and through further lowering some interest rates, a Reuters report said.

The report, citing EU officials, said that one reason for a very smooth auction of a five-year Greek bond, which yielded 4.95 pct, before German Chancellor's visit to Athens, was the fact that investors were expecting a restructuring of Greece's debt.

The market also expects a new upgrading by credit rating agencies and at later stage a reduction of the country's debt to the official sector without any haircut of debt to private investors.

The report noted that negotiations over a restructuring of Greek debt were expected to begin later this year.

source: ΑΜΝΑ