While a restructuring may not take place for another year or two, it’s a move that Greece may be unable to avoid, many say, despite assurances to the contrary from officials at the EU and IMF.
Restructuring is essentially a default, under which Greece would renegotiate its debt with bondholders, either lengthening its maturities or reducing the amount it owes, causing bondholders to take a loss.
“At this point, it is very clear that restructuring is the only option,” says Lena Komileva of Tullett Prebon in London.
Josef Ackermann, the chief executive of Deutsche Bank, said earlier this month he thought it “doubtful” that Greece would be able to repay all its borrowings.
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WSJ–Greece May Yet Have to Restructure Its Finances
While a restructuring may not take place for another year or two, it’s a move that Greece may be unable to avoid, many say, despite assurances to the contrary from officials at the EU and IMF.
Restructuring is essentially a default, under which Greece would renegotiate its debt with bondholders, either lengthening its maturities or reducing the amount it owes, causing bondholders to take a loss.
“At this point, it is very clear that restructuring is the only option,” says Lena Komileva of Tullett Prebon in London.
Josef Ackermann, the chief executive of Deutsche Bank, said earlier this month he thought it “doubtful” that Greece would be able to repay all its borrowings.
Read it all.