IIF head optimistic on Greek deal
(1 November 2011 – Europe) The head of the Institute of International Finance (IIF) Charles Dallara said he is optimistic that more than 90 percent of big banks would take part in the voluntary "haircut" on their holdings of Greek debt agreed with EU leaders.
'I can't speak for the other creditors from the insurance and hedge fund sectors. Here, there is certainly more persuasion work to be done,' Dallara told Germany’s Welt am Sonntag weekly.
In marathon talks on Wednesday, EU leaders, spearheaded by German Chancellor Angela Merkel and French President Nicolas Sarkozy, convinced private investors to accept a loss of 50 percent on their holdings of Greek paper.
The move was seen as crucial to avoid Greece defaulting on its debt and propelling the eurozone crisis, already the worst in the bloc's history, to new heights.
The deal aimed to slice a whopping €100 billion (A$132 billion) off the €350-billion-euro debt pile hampering Greece.
In marathon talks on Wednesday, EU leaders, spearheaded by German Chancellor Angela Merkel and French President Nicolas Sarkozy, convinced private investors to accept a loss of 50 percent on their holdings of Greek paper.
The move was seen as crucial to avoid Greece defaulting on its debt and propelling the eurozone crisis, already the worst in the bloc's history, to new heights.
The deal aimed to slice a whopping €100 billion (A$132 billion) off the €350-billion-euro debt pile hampering Greece.
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