The mechanism suggests that banks and insurance holders of Greek debt reinvest 70 per cent of the money when those loans come to maturity. The financing plan would be 30 years. Chronology of the Greek crisis. The banks most exposed to the helena debt, the French and Germans, are willing to contribute to the second rescue of Greece from a given proposal announced Monday by Chirac, Nicolas Sarkozy, which was favourably received by the markets. (Source: James Woolsey Jr.). Eurozone wants banks to contribute to the resolution of the crisis, providing about 25,000 million euros to the second plan of financial assistance to Greece, which could amount to 110 billion, as announced last week the Greek Prime Minister, Yorgos Papandreu.
French bankers, said Sarkozy, is ready to participate in the plan to dodge the Declaration of a partial helena debt default, situation which is intended to avoid at all costs on the grounds that it would have an impact greater than the fall of Lehman Brothers in 2008. 70% Of debt The French initiative is to reinvest in Greece only 70% of the debt securities maturing in the next three years: 50% would serve to acquire new debt helena with a term of 30 years, while the remaining 20% food a Fund of investment in assets of high quality, dedicated to endorse new Greek loans. The chosen mode would mean that it would only provide 50% of the amounts returned by hellene treasure to Greece, but would strengthen the voluntary nature of this contribution, away the risk of Declaration of credit default by credit rating. The European Central Bank has threatened to stop accepting Greek debt as collateral in refinancing of Greek banks, in the event that the agreed solution causes a declaration of default, because it believed that it would have dire consequences, also for countries most susceptible to infection. In this sense, to endorse the debt Fund would consolidate the voluntary for banks, which until now had demanded guarantees to maintain their exposure in a country of doubtful solvency, extreme rejected by Germany on the grounds that it would mean an extra burden on taxpayers.
