Tuesday, April 12, 2011

Restructuring talk gains momentum in Greece

Such a consensus could take many months to achieve, so any restructuring might not happen this year. But bailout aid is due to stop flowing in mid-2013; before then, Greece wants to return to financing itself in the markets. When it does that, it will want to have put any restructuring behind it.
The Greek electoral timetable may also have an impact. the next elections are due by October 2013 and PASOK's lead in public opinion polls has been dropping, to 2.9 percentage points in a poll published this month from 4.9 percentage points last December.
Meanwhile, the passage of time may make a restructuring more palatable to all sides by giving the commercial banks holding Greek debt a grace period during which they can make provisions for possible losses and cut their holdings gradually.

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