ATHENS, May 28 (Reuters) - The head of Germany's economic advisors said on Saturday a Greek debt restructuring may be necessary and, if so, he would favour a haircut -- or valuation discount -- on Greek bonds.
'Possibly, a debt restructuring would be necessary and in this case I am in favour of a haircut,' the chairman of the 5-member panel of 'wise men' advising the German government told the Greek Real newspaper. 'I am fully aware of the cost of such a measure.'
Wolfgang Franz said it was unacceptable for taxpayers to bear the risks associated with Greek debt while bondholders enjoyed high interest.
(Reporting by Angeliki Koutantou; Editing by John Stonestreet) Keywords: GREECE GERMANY/WISEMAN (dina.kyriakidou@reuters.com; +30 210 337 6438; Reuters Messaging: dina.kyriakidou.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Possibly, a debt restructuring would be necessary and in this case I am in favour of a haircut,' the chairman of the 5-member panel of 'wise men' advising the German government told the Greek Real newspaper. 'I am fully aware of the cost of such a measure.'
Wolfgang Franz said it was unacceptable for taxpayers to bear the risks associated with Greek debt while bondholders enjoyed high interest.
(Reporting by Angeliki Koutantou; Editing by John Stonestreet) Keywords: GREECE GERMANY/WISEMAN (dina.kyriakidou@reuters.com; +30 210 337 6438; Reuters Messaging: dina.kyriakidou.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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