Greece goes down to the wire: The Institute of International Finance (IIF), the entity representing creditors in the Greek private equity swap, estimates that a disorderly default on Greek debt would cost Europe north of 1 trillion euros ($1.3 trillion): 177 billion euros in losses for the European Central Bank ; 380 billion euros for additional support for Ireland and Portugal (already receiving aid); 350 billion euros to shore up Spain and Italy; and 160 billion for bank recapitalization.
We will find out Thursday night how many bondholders have accepted the Greek deal. There’s obviously some concern that a disappointingly large number of bondholders may turn down the offer. Rumors are already swirling they will have to extend the deadline.
Obviously, this is an alarmist tract that was likely deliberately “leaked” to scare everyone into cooperating — but is it entirely inaccurate? It should not be dismissed outright.Page 1 of 4 | Next Page