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Greek Debt Best Sustained by Haircuts, Measures, Citigroup Says

Greece’s debt will become sustainable most effectively through fiscal measures and a so-called haircut on the country’s debt, Citigroup Inc. said.

“The best combination to achieve a sustainable Debt/GDP is through a combination of measures and a 40 percent haircut,” Citigroup Inc. analysts, including London-based Stefan Nedialkov, said in an e-mailed note today. A “haircut” would translate into losses for holders of Greek government bonds.