Dec. 16 (Bloomberg) -- Euro region officals have approved a proposal for new bonds issued to Greece’s private creditors to have the same legal status as a 30 billion-euro ($39 billion) loan from the European Financial Stability Facility, Kathimerini reported, without saying where it got the information.
A Dec. 14 meeting of finance ministry officials from euro region countries approved the proposal, which would be part of a debt swap plan currently under discussion between Greece and its creditors, the Athens-based newspaper said. The proposal will mean a 54 percent net present value loss for holders of about 200 billion euros of privately held Greek debt, Kathimerini said.
A summit of European Union leaders on Oct. 26 agreed to a debt swap for Greece involving private sector lenders taking a 50 percent nominal loss on holdings of Greek debt. They agreed at the summit for Greece to receive a 30 billion-euro loan from EFSF to help structure the deal.
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