Don’t change Greek bailout terms for private sector says Deutshe Bank chief
03 Oct 2011
According to the head of Deutsche Bank, changing the terms of voluntary private sector participation in a bailout for Greece agreed in July could cost the support of private investors.
Deutsche Bank chief, Josef Ackerman voiced the concern in an interview in the Sunday edition of the Greek newspaper Kathimerini.
He said if the voluntary accord of 21 July was to be reopened it would not only lead to loss of precious time but also possibly private investor support.
He added the impact of such a move would be incalculable and that was the reason he was warning in the most forceful way against any material revision. Ackeraman also heads the International Institute of Finance (IIF), which is leading bond swap talks on behalf of banks.
Holders of Greek bonds agreed to a 21 per cent ''haircut'' on the value of their debt on 21 July as part of an EU / IMF bailout. This may however need to be increased after EU and IMF inspectors go through Greece's books, according to EU officials.
According to Ackermann, the exposure of French and German banks' to Greece was "absolutely manageable", and that it was "necessary and important that euro zone governments stick to their pledges and implement them on time and decisively".
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