Tuesday, June 28, 2011

French Banks to Roll Over Greek Debt

French banks have a plan for Greece: they will roll over loans to Greece coming due over the next several years. This is the proverbial "kicking the can down the road" response to insolvency. The markets aren't entirely buying it. Here is one possible version of the future: news in the future conditional, not a mode commonly used by the Times, but appropriate to this kind of story.

1 comment:

FrédéricLN said...

Yes, the story in The Times is one the banks could buy (BNP did) and the governments will have to.

The substance means : "dear banks and investors, please exchange 2 greek euros for 1 European euro".

It's quite fair. It's a classical "London club style" solution; with a European input, for sure.

Mrs Merkel might approve that; the rescue plans she objected to were on a very different bases; they meant "dear banks and investors, you wondered whether the 2 euros you loaned to Greece (taking a good risk premium for yourself) will be reimbursed: don't worry, Greek debt is European debt, it's safe".