E-Paper
EU, banks near deal on Greece
Negotiators from the European Union and banks are “relatively close” to a deal to write off around half of Greece’s €350-billion debt pile, an EU official said on Monday.
Negotiators from the European Union and banks are “relatively close” to a deal to write off around half of Greece’s €350-billion debt pile, an EU official said on Monday.
“We’re relatively close to a deal,” said EU economic affairs commissioner Olli Rehn’s spokesman, Amadeu Altafaj.
The EU’s “preference” was “for a voluntary approach,” Altafaj said, but batted away questions on the so-called “haircut” of “at least 50%” sought by eurozone finance ministers.
The EU has asked banks to agree to a 60% write-down, but banks are so far sticking to their offer of a 40% cut, a source said.
Greek stocks plunged more than 5% in late morning trade, led by falls in the banking sector.
Greek banks hold about €44 billion in sovereign debt bonds, and pension funds another €8 billion.
