The European Co mission, IMF, and Germany have all agreed that Greek needs to have a “voluntary restructuring” of its debt, according to Die Welt (via Bloomberg).
A German government spokesperson has denied any decision has been made on a Greek bailout or restructuring, and said no decision would be made until the EU and IMF release their report on Greece, according to Bloomberg.
Early details from that report suggest that Greece has not be holding up its side of the austerity bargain, and that its debt to GDP ratio will rise this year.
Even if Germany, the European Comission, and the IMF now back a Greek debt restructuing, they still likely face opposition from the ECB. Die Welt also suggests that France is opposed to any restrucuting, according to Bloomberg. Notably, France’s banks have significant exposures to Greece, as do Germanys.
Last night, German Chancellor Angela Merkel held an emergency meeting with the president of the European council. It’s unknown whether the two came to any conclusion on Greece.
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