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Despite staunch denials by EU officials and Greek finance minister, two local newspapers have reported that a restructuring is in the works, according to The Guardian.Ta Nea said the government was considering a “velvet restructuring,” which would extend the repayment terms of loans, and that Papaconstantinou that is holding talks. Ta Nea didn’t reveal its source.
Isotimia had more specifics and said the government is hoping to extend the maturities of its outstanding debt by five years, The Guardian reported.
Meanwhile Interpol officials are expected to question Citigroup trader Paul Moss in London today, after Greek officials claim that an email sent by Moss about debt restructuring set-off a share sell-off at the Athens Stock Exchange. RTT News quotes the email:
“MKT NOISE Over the last 20min, there seems to be some increased noise over Greek debt restructuring as early as this Easter weekend.”
In a statement, the Greek Finance Ministry said:
“Such rumours are of course devoid of any substance and verge on the ridiculous.
Nevertheless, since the dissemination of such false “news” can create concerns among the public at large, the Ministry of Finance will use all legal means available in order to identify and pursue those responsible.”
Meanwhile, Citigroup has denied any wrongdoing on the part of its employees but is said to be cooperating with the investigation.
Yields on 2-year Greek bonds soared over 23% yesterday while 10-year bond yields reached almost 15%.