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| Europe |
| French banks agree to defer Greek loans |
| 2011-06-28 |
| [Al Jazeera] French banks have reached an outline agreement to roll over holdings of maturing Greek bonds as part of a wider European plan to avoid sovereign default. Nicolas Sarkozy, ...23rd and current President of the French Republic and ex officio Co-Prince of Andorra. Sarkozy is married to singer-songwriter Carla Bruni, who has a really nice birthday suit... the French president, said in Gay Paree on Monday that the banks would be offered 30-year Greek bonds with a coupon equivalent to the euro zone's lending rate to Greece, plus a premium based on the financially troubled nation's future economic growth rate. "We concluded that by stretching out the loans over 30 years, putting [interest rates] at the level of European loans, plus a premium indexed to future Greek growth, that would be a system that each country could find attractive," Sarkozy said. Banking sources confirmed the agreement was part of a deal under which banks would reinvest 70 per cent of the proceeds when Greek bonds fall due. Of that amount, 50 per cent would go into the new 30-year bonds and 20 per cent would be reinvested in a zero-coupon guaranteed fund based on high-quality securities. The news came as international bankers met euro zone policymakers in the Italian capital, Rome, to discuss how the private sector can share the burden of a second rescue programme for Greece. Euro zone sources said EU officials were discussing the French idea with international bankers and the Institute of International Finance (IIF). According to them, Charles Dallara, the managing director of IIF, met Vittorio Grilli, director general at Italia's treasury and chairman of the euro zone's Economic and Financial Committee (EFC), to discuss Greece's struggle to avoid default. |
| Posted by:Fred |
| #2 Real Headline: Greece Defaults on French Debt. |
| Posted by: Bright Pebbles 2011-06-28 08:49 |
| #1 Reminds me of Fannie/Freddy repacking loans for the US housing market. I |
| Posted by: Bobby 2011-06-28 06:31 |