Pitching in
June 30, 2011
German banks agreed on Thursday to a voluntary plan to roll over Greek bonds as part of second bailout package for Athens still in the works.
The agreement between the banks and government officials covers approximately 3.2 billion euros ($4.6 billion) in investments in Greek bonds, which had been due to expire before 2014. The announcement came at the same time as Greek lawmakers agreed to the second half of crucial, new austerity plans in Athens.
German Finance Minister Wolfgang Schäuble said he was happy that the banks were ready to participate.
"The institutions represented here today hold debt worth 10 billion euros, and of this 55 percent is very long term, beyond 2020," Schäuble said. He added that this demonstrated their commitment to Greece.
Details still to come
The banks said they will follow the plan that French banks settled on earlier this week. That agreement saw maturities on some Greek government bonds extended by 30 years. The exact details of the German agreement, however, still need to be determined.
Deutsche Bank Chief Executive Josef Ackermann, who participated in the talks, said that "some modifications still need to be added." Schäuble said that a final solution should be settled upon by Sunday, when eurozone finance ministers are scheduled to meet in Luxembourg.
German and French banks and insurance companies are among the major holders of Greek debt.
Author: Andre Leslie (AFP, dpa, dapd)
Editor: Andreas Illmer