As expected, Tuesday evening’s meeting of eurozone finance ministers to discuss a new Greek bail-out produced few results, other than an agreement to meet again Sunday evening. That session will be a last-gasp effort to reach a consensus before Monday’s much-anticipated formal ministerial meeting, where officials are hoping a deal can be finalised.
But as we reported in today’s paper, the assembled ministers got a pretty dire picture of what would happen if they decided to proceed with a German-backed plan to get private investors to take part in the bail-out by swapping most existing Greek bonds with new bonds that wouldn’t have to be repaid for seven years.
To give Brussels Blog readers more insight into the thinking of the European Commission, which produced the memo outlining the scenario for eurozone ministers – titled “Options for private-sector involvement in financing a macro-economic adjustment programme for Greece: Note for the Europgroup” – we thought we’d post a few relevant exceprts. Read more