Tuesday, March 06, 2012

Greece threatens to default on debt

Greece on Tuesday threatened to default on payments to any bond investor that doesn’t participate in a debt restructuring that is central to international plans for a rescue of the ailing country.

Greece is asking banks, pension companies, hedge funds and others that hold about $260 billion in Greek bonds to trade them for new notes worth less than half the face value and carrying low-interest terms meant to make the country’s situation sustainable.
Read the rest here.

Wow! Didn't see that one coming!

3 comments:

Anonymous said...

Greece could do like Iceland did, tell the bankers to take a hike. Iceland sentenced the former head of their state bank to 10 years in prison.

Anastasia Theodoridis said...

I doubt the EU would let Greece get away with that, even though Iceland did.

mjl said...

It was a huge gamble on Iceland's part and I'm not sure there's enough chutzpah in the whole of Europe to see it done again. We shall see.