Greece will have to restructure its debt, meaning bondholders will probably lose much of their principal, Thomas Straubhaar, head of the HWWI economic institute, was quoted as saying by Sueddeutsche Zeitung.
The head of the Hamburg-based institute predicted the so- called haircut for investors in Greek sovereign bonds will be at least 50 percent and likely more, the newspaper reported today, citing an interview.
The International Monetary Fund and European Union officials should organize the debt restructuring and press Greece’s private creditors to accept an extension of bond maturities or a quick immediate haircut, Straubhaar was quoted as saying.
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