Friday, April 22, 2011

Greeks 'planning debt restructuring'. - Greek newspapers report that government is considering extending term of loans as Citigroup trader faces grilling by Interpol over source of market rumours. Greece is considering ways to restructure its debt – such as by extending the life of its loans – two national newspapers claimed on Friday, joining a flurry of recent reports on the prospect that Athens might be forced to default. Greek and EU officials have steadfastly denied a debt restructuring is planned in the face of mounting evidence that markets are factoring one in. Detectives from Interpol are expected to interview Citigroup trader Paul Moss on Friday about an email he sent on Wednesday about a rumoured restructuring which Greek officials claim sparked a share sell-off in Athens. The country's top-selling newspaper, Ta Nea, said without citing a source that the government was mulling "a velvet restructuring" that would include extending outstanding debt and a voluntary agreement with lenders to modify repayment terms. Such a step would have to be taken before 2012, the newspaper said, but not before the expiry of the term of ECB chief Jean-Claude Trichet, who steps down at the end of October. The Greek official in charge of the informal debt extension talks "seems to be" finance minister George Papaconstantinou and a team of advisors, the newspaper said, without elaborating with whom they were holding talks.

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