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Eurozone governments intend to ask private-sector creditors holding soon-to-mature Greek bonds...

Eurozone governments intend to ask private-sector creditors holding soon-to-mature Greek bonds to exchange them for new debt with a longer maturity. "Private investors would have a strong incentive to participate, because if they don't, there will be a default," said an official.
Comments (11)
  • Barry Crocker
    , contributor
    Comments (454) | Send Message
     
    because if they don't, there will be a default.

     

    i.e the Greeks have them by the short and curlys.
    5 Jun 2011, 08:16 AM Reply Like
  • User 353732
    , contributor
    Comments (4889) | Send Message
     
    These "investors" are mostly big bad banks that are defacto extensions of big bad government.

     

    Bad governments provide vast almost free credit using fake Euros to bad banks who then buy bad public debt from other bad governments.

     

    This is the circularity of financial deceit and economic depravity.
    5 Jun 2011, 08:54 AM Reply Like
  • kmi
    , contributor
    Comments (4030) | Send Message
     
    These investors are either 'stupid' for buying debt that has such a high risk, or really 'smart' for betting on Greece getting a bailout and grabbing a good return in the process, although in general I agree with User's comment....
    5 Jun 2011, 09:21 AM Reply Like
  • Angel Martin
    , contributor
    Comments (1309) | Send Message
     
    Some of these creditors must own CDS on this debt. Why would they roll it over rather than trigger a credit event where they get made whole?
    5 Jun 2011, 10:03 AM Reply Like
  • Michael Parmar
    , contributor
    Comments (235) | Send Message
     
    An important point!

     

    If a re-profiling occurs without a default event, raises the question of what CDS is for in the first place.

     

    Yet, if banks don't sign up to the new debt plans, considering governments rescued the financial system and save them once, they will have committed political suicide.

     

    So its payback time for the banks and the Greek crisis has suddenly turned into a wider question of how "free" the banks are.

     

    Remembering the old adage "if you owe the bank $50,000 they own you, if you owe the bank $50 billion, you own the bank"... and that should indicate which way the chips will fall on this one.
    5 Jun 2011, 01:20 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    This sounds eerily familiar. Like when the socialists threatened senior debt during the GM bankruptcy. Got them to take an ugly haircut while slipping the unions a sweetheart deal.
    5 Jun 2011, 11:22 AM Reply Like
  • rpodraza
    , contributor
    Comments (298) | Send Message
     
    This looks like a default in everything but name only.
    5 Jun 2011, 12:39 PM Reply Like
  • hondomeade
    , contributor
    Comments (9) | Send Message
     
    Sort of reminds me of the US situation, including the denial of its' existence. Financial reform - bill - is shutting (potentially) small banks and allowing "too big to fail" banks to grow. It did not address derivatives, ...........
    5 Jun 2011, 05:19 PM Reply Like
  • kostastsakiris
    , contributor
    Comment (1) | Send Message
     
    I think the rermark of Angel Martin and mr drmikep is very much correct. I' m greek and i believe that it is so difficult for the private banks to agree in a such proposition as to re-finance the greek dept.
    6 Jun 2011, 02:37 AM Reply Like
  • bob adamson
    , contributor
    Comments (4558) | Send Message
     
    As of June 12th the underlying trend implied by the following array of recent reports from newspapers across Europe suggests that circumstances are falling in place for continued support of their fiscal predicaments for Greece, Ireland and Portugal (at least for the near term). This is not to say that the IMF, ECB and the EU have agreed to precise term revisions or that Greece, Portugal and Ireland have agreed to these revisions but only that impediments to such revisions, as they prove necessary, are being removed.

     

    www.hurriyetdailynews....

     

    www.irishtimes.com/new...

     

    www.spiegel.de/interna...

     

    www.spiegel.de/interna...

     

    www.ekathimerini.com/4...

     

    www.irishtimes.com/new...

     

    www.france24.com/en/20...

     

    www.theportugalnews.com/

     

    www.guardian.co.uk/bus...
    12 Jun 2011, 01:55 AM Reply Like
  • Angel Martin
    , contributor
    Comments (1309) | Send Message
     
    I don't know about "the impediments being removed"... we now have the head of the Bundesbank speculating on what the post greek default landscape will look like:

     

    www.bloomberg.com/news...
    12 Jun 2011, 01:44 PM Reply Like
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