Saturday, October 27, 2012

No Greek Haircut

German Finance Minister Wolfgang Schaeuble announced that a "haircut", or restructuring, of Greek debt would not be possible. The Greek government had asked for a haircut on the country's debt, in this case a by reducing in the coupon rate and extending the maturity of Greece's debt. Schaeuble stated that refunding, or buying back outstanding bonds and replacing them with new debt, was a possibility.