Banks refuse to write off more than 50% of Greek debt
2012-01-25 12:33:03
Banks locked in talks with Athens to write off a big chunk of the Greek bonds they hold reiterated that they would not take more than a 50 per cent haircut on the debt.
Charles Dallara, head of the Institute of International Finance and chief representative in the debt write-off negotiations, drew the line at a 50 per cent loss of the face value of the bonds, as Greece struggles to cut its debt service burden.
Fifty per cent is "the maximum loss that private creditors could suffer on a voluntary basis," he said in a teleconference for journalists from Zurich.
"We now call on all parties to honour that agreement," he said.
He spoke after European finance ministers, weighing what role they would play in a new refinancing pact on Greece, called on both Greece and the banks to make more sacrifices in the deal.