Greece Sees 50% Debt Write-Off in Orderly Default, Ta Nea Says
Greek Finance Minister Evangelos Venizelos told members of the ruling party that he sees three possible outcomes to the debt crisis, including one that involves an orderly default with a 50 percent loss for bondholders, Ta Nea said, without citing anyone.
Venizelos outlined “good, bad and better” scenarios to lawmakers with the “good option” involving the implementation of the July 21 accord for a second financing package, which projects a 20 percent loss for bondholders, the Athens-based newspaper said.
The “bad” scenario is a collapse of the accord and a disorderly default, Ta Nea said. The “better” one involves an orderly default in the euro area with Venizelos indicating a 50 percent haircut for investors, the newspaper said. That outcome isn’t something Greece can request and requires the agreement and coordination of many actors, Ta Nea said.
To contact the reporter on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net
To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net
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