In Next Greek Bailout, Idiot Lenders May Finally Take A Hit


Private holders of Greek debt appear to be willing to go along with the EU-IMF strategy to get them involved with the next Greek bailout, according to Der Spiegel.

The paper reports that bondholders will be willing to accept a “rollover” of their debt into new securities, which will provide Greece with an additional €20 billion to €35 billion.

Those numbers match yesterday’s Reuters report that the Greek bailout would involve the participation of private investors, to the tune of €30 billion.

The big question now is whether or not this will be a forced rollover. If it is, it may trigger the default provisions of credit agencies and a credit event, with potentially damaging effects to the ECB.

Don’t miss: Who gets slammed in a Greek restructuring event >


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