Greek banks can withstand haircut of up to 30 percent - sources
ATHENS |
ATHENS (Reuters) - Greek banks could endure a loss of up to 30 percent on their Greek government bonds but could not stand significantly bigger haircuts, Greek banking sources said on Thursday.
"Banks can withstand a haircut of up to 30 percent but a 50 percent haircut would inflict big losses and if it takes place there must be strong support for the economy," a high level banking source said.
(Reporting by George Georgiopoulos; Writing by Ingrid Melander)
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Comments (1)
margaretbowker wrote:
Is it being proposed that any increase in ‘haircut’ from the original 21% will be implemented without delay, if the terms of the second Greek bailout are reconfigured? It hasn’t been made clear and it seems rather concerning if up to 50% is being suggested. Or is it being considered as a second stage, to be included in the new terms, but with a time lag?
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