AND NOW: There Are Fresh Headlines About ECB Involvement In Greek Debt Restructuring

We wrote last week about rumours reported by WSJ that the European Central Bank could give back its holdings of Greek bonds to the Greek government at below face value but at least equal to the money it paid for them in the first place.

Now there is more chatter from Dow Jones that this really might be happening.

The complicated accounting trick we wrote about last week would use the euro bailout fund—the European Financial Stability Facility—to facilitate the return of some €50 billion ($66 billion) in bonds to Greece for at least their purchase price of about €39 billion ($51.6 billion). It is unclear whether or not this is the same plan being considered.

It’s also been rumoured that this official sector involvement (OSI) might be a sticking point of bondholder willingness to participate in a voluntary debt swap.

Here’s a look at some of those new headlines:

Photo: Dow Jones

Photo: Dow Jones

For a better explanation, check out our chart of how last week’s bond return plan would work. Essentially, we argued, it could open the door to debt forgiveness all across Europe—but that’s not necessarily a bad thing:

ecb efsf greece debt monetization

Photo: Simone Foxman for Business Insider

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