Friday 13 January 2012

Greek default on the cards


Greece races to tie up writedown deal before debt repayments fall due
Greece could default on debts if talks with investors break down and it fails to secure the next tranche of bailout cash

12 January, 2012

Greece and its private-sector creditors are involved in a race against time to finalise a debt writedown deal over the next 48 hours that will prevent the troubled country from defaulting on its massive debts.

The body negotiating on behalf of investors is adopting a tough stance amid concerns that a breakdown in the talks would result in Greece failing to secure the next tranche of its bailout cash from the European Union, the European Central Bank and the International Monetary Fund.

Charles Dallara, who heads the Washington-based International Institute of Finance, which is acting on behalf of private investors, said "some key areas remained unresolved" after a two-hour meeting with Greece's finance minister Evangelos Venizelos.

"Discussion will continue in Athens [on Friday] but time for reaching an agreement is running short," Dallara said in a statement.

"It is essential in order to finalise the voluntary agreement that support be given by all official parties in the days ahead."

For article GO HERE









Hedge funds hunker down for Greek debt standoff

12 January, 2012

Hedge funds are positioning to profit from a plan to slash Greece's towering debt pile as Athens enters final talks that could sway the country's membership of the euro.

York Capital, the $14 billion fund part-owned by Swiss banking giant Credit Suisse (CSGN.VX), New York-listed Och Ziff (OZM.N), and $10 billion-strong Marathon Asset Management are among those who collectively may have built up sufficiently large positions to scupper the bailout deal, several sources close to the debt restructuring told Reuters.

The deal asks creditors to voluntarily write down 50 percent of the notional value of their bond holdings. But hedge funds may opt out, hoping that Athens will let them get away with it to save itself political embarassment

For article GO HERE

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