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Incoming ECB president Mario Draghi (above) favors a voluntary rollover of Greek debt like the 2009 Vienna Initiative...when international lenders rolled over their credit lines to central and east european nations.
“The Vienna initiative looks to me to be entirely voluntary,” Draghi said during confirmation hearing. “The ECB is not in favor of restructuring and haircuts” and it “excludes all concepts that are not purely voluntary".
Austria begs to differ.“You can’t leave the profits with the banks and make the taxpayers shoulder the losses,” Austrian FM Maria Fekter said. “Ministers have different positions,” she said. “We’ll put them on the table and look at where the compromise lies.”
Germany's parliament will support a second Greek bailout...but only with private sector involvement.
S/P has downgraded Greece again...to -CCC. It's debt is now lower...than Jamaica and Pakistan...and even 2 recent defaulters...Argentina and Ecuador.
It believes that Greece is “increasingly likely” to face a debt restructuring.
