24 February 2012

EUROZONE / GREECE / PORTUGAL / IRELAND: Sovereign Debt Restructuring May Heat-Up.

    (Note:This article is somewhat technical)
     Sovereign debt restructuring may begin to heat up.
     Because of its local laws...Greece has successfully lopped...E107bn/$144 bn...about 75% from most private investors...of its total debt of... E373 bn.
    Greece now only trails Iraq's huge 89% bondholder losses...and Argentina's 76.8% write offs.
    Athens also may be setting a new paradigm...for austerity wracked Spain, Portugal, Belgium and Italy...where most bonds are governed by local laws.
    Bottom line...it may mean less investment in sovereign bonds of troubled nations...because as Germany's Commerzbank CEO Martin Blessing (foto) bitterly complained about his E2.2bn/$2.9 bn loss...'the participation is as voluntary as a confession during the Spanish Inquisition."