Banks Balk at 50% Euro Debt Haircut

Not surprisingly, Europe’s largest banks are rejecting calls to take a rumored 50 percent haircut on Greek sovereign debt as part of a Eurozone debt relief program. The banks claim they had agreed to a 21 percent write-down on the Greek debt saying that a return only half of the amount lent to Greece is unacceptable.

Germany’s Finance Minister Wolfgang Schaeuble said that the terms of the deal have yet to be financed but the lenders could very well be forced to accept a 50 percent reduction in debt repayment.

Source: BBC News

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