Eurozone finance ministers have rejected an offer made by Greece’s private creditors on cutting the cash strapped country’s debt as “insufficient”.
After talks to convince the banks and investment funds into accepting big losses, the ministers said they were still asking too much.
But Eurogroup President Jean-Claude Junker stressed he had confidence a deal could be made before Greece faced defaulting on its debt and a possible exit from the eurozone.
“Let me make it crystal clear: there are absolutely no divergences of view on this matter around this table. For everyone of us, the future of Greece is clearly within the euro area”
Ministers also remain committed to a second EU bailout for Greece, but are waiting to see the terms of the country’s debt restructuring.
But some believe Greece’s fate is sealed such as
Robert Halver of Baader Bank.“Even a 100 percent haircut of the Greek debt would not be a sustainable solution for Greece. Because Greece has no chance to survive the euro zone with the currency euro. The best way would be if the Greeks would go out of the European zone, would do their homework (for) about 10 years and come back.”
But that is thinking the unthinkable and European governments are pushing for investors to accept swapping existing Greek government bonds for new longer-term ones at a low rate as long as Athens cuts its debt mountain to a sustainable level.