ATHENS (Commodity Online): Private sector creditors of Greek debt could be forced to take in almost 70% as a “voluntary haircut”, as per Finance Minister Evangelos Venizelos.
"We are talking about a haircut on the net present value exceeding 70 percent”, he was quoted by Reuters.
The leaders of the European Union have been unsuccessful in resolving the Greek debt crisis and may ratings agency foresee an eventual default arising. Both S&P and Fitch ratings have repeatedly stated that they expect Greek to default and any “voluntary haircut” will also be considered a default event.
Fitch had gone on record saying that Greek will default on March 20, 2012, when it will not be able to honour a payment. The resulting effect may trigger a worldwide derivative sell-off's and tumbling financial institutions
