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!


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.