A letter from Germany to other European Union members has once again thrust the possibility of a restructuring of Greek debt that could see investors suffer losses into the forefront.The letter was sent by German Finance Minister Wolfgang Schaeuble and calls for a “quantified and substantial” contribution from bondholders to Greek support efforts.
“Such a result can best be reached through a bond swap leading to a prolongation of the outstanding Greek sovereign bonds by seven years, at the same time giving Greece the necessary time to fully implement the necessary reforms and regain market confidence,” the letter, a copy of which was obtained by Reuters, reads.
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