Greek paper received another blow yesterday morning after an article in Die Zeit, which said that Germany calls for the plan, allowing Greece to make the restructuring of its debts. Would be surprising if the German finance minister did not consider this issue very seriously, despite the refutation of yesterday.The article says that Greece will be allowed to buy back their own debt through a fund that is available from EFSF for more convenient interest rates. Conditions in Germany, providing such subsidies as a percentage - this agreement with Greece on the new arrangements on deficit and debt reduction. It's an interesting idea. Greek bond holders participating in any buy-out, in this case will receive the par value and a much smaller coupon than now. However, when the period of redemption is over (about 2013), then it will be reasonable to expect that bondholders will be forced to reduce the par value of 20-30%, as part of a new mechanism for European stability.
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