№247. An evaluation of the French proposal for a restructuring of Greek debt
№247. An evaluation of the French proposal for a restructuring of Greek debt

Author(s): Christian Kopf
Subject(s): National Economy, Economic policy, Government/Political systems, Political economy, Financial Markets
Published by: CEPS Centre for European Policy Studies
Keywords: French proposal; Restruction of Greek debt; French commercial banks; Greek government;
Summary/Abstract: French commercial banks are proposing a swap of €85.5 billion in Greek government bonds maturing between 2011 and 2014 into a combination of new long-term Greek bonds with principal guarantee and cash payments. If this initiative were implemented under the proposed parameters, private creditors would only suffer a minimal haircut and official lenders would be provided with cash-flow relief of around €20 billion over the next three years, but the solvency of the Hellenic Republic would worsen significantly.

• Details
• Contents