EIB Said to Get Similar Exemptions From Writedowns to ECB
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The European Investment Bank’s bonds rallied after the development lender for the 27-member bloc was said to be getting a similar exemption from Greek debt writedowns to the euro area’s central bank.
The European Central Bank negotiated a deal to avoid the 53.5 percent loss on principal that’s costing private investors as much as 106 billion euros ($142 billion). The EIB, which unlike its Frankfurt-based counterpart represents the entire European Union, also owns Greece’s debt and is sidestepping the so-called haircut in the same way, according to two regional officials familiar with the matter.