LONDON — Greece is poised to call in Rothschild, one of the oldest financial firms in the world, to help it navigate its current debt crisis, according to a report in the Financial Times.
The FT reports that Greece is about to appoint Rothschild as its sovereign debt advisor, replacing US investment bank Lazard, which worked on bailout talks in 2012.
The appointment is set to be made before crunch debt talks with eurozone finance ministers on February 20, the FT says citing two unnamed sources.
Greece is facing a looming repayment crunch, with more than €6 billion (£5.1 billion, $US6.3 billion) due in July that it is unlikely to be able to meet without help or restructuring.
Greece’s two biggest creditors are the International Monetary Fund (IMF) and the EU. The IMF earlier this month called for “significant debt relief” to stop Greece’s debts becoming “explosive,” but EU member states, particularly Germany, are reluctant to deviate from the previously agreed plan of harsh austerity reforms and repayments.
Rothschild is one of the oldest investment banks in the world, founded over 200 years ago by Mayer Amschel Rothschild. Five of his sons established banking businesses around Europe and the firm today has roughly 2,800 employees in 40 countries, according to its website.
Rothschild & Co. is the financial holding company for all the family’s banking interests, covering investment banking, corporate banking, private equity, asset management, and private banking. It had a £1.38 billion annual revenue as of March 2016.
According to some estimates, the Rothschild family’s combined personal wealth is as much as £285 billion ($US350 billion), although not all of that derives from Rothschild & Co.