Merkel Rules Out Haircut for Greek Debt

Chancellor Angela Merkel on Sunday suggested that Germany would show flexibility in negotiating how Greece deals with its massive debt, but again ruled out writing off part of the money.

Speaking on ARD television’s Bericht aus Berlin program, Merkel said that “a classic haircut of 30, 40 percent of debt cannot happen in a currency union.”

But Merkel, who persuaded German lawmakers on Friday to give their overwhelming backing to another financial rescue package, suggested that she was open to discussing ways to lessen the burden on Athens.

She said, for example, Greece previously has been given more favorable interest rates, time extensions and other relief

“We can talk about such things again,” she said, but added such talks could only begin after details of Greece’s bailout program are finalized.

via Mainichi

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza