Greece’s prime minister has promised to find a deal with investors and official creditors on a “voluntary” debt swap before a major March bond redemption, according to Reuters. Private creditors have bristled at a last-minute German proposal to cut coupons on the new restructured debt from five per cent to two or three per cent, the FT says. The change would reduce cash-flow from the bonds such that investors would face an 80 per cent haircut to the net present value of their current bonds, rather than the 60 per cent previously expected. Meanwhile, S&P’s downgrade of several eurozone sovereigns on Friday has turned the market’s attention to the EFSF’s vulnerable AAA rating, the WSJ reports.

This entry was posted by Joseph Cotterill on Monday, January 16th, 2012 at 10:18 . Tagged with EFSF, Greece, s&p. Edit this entry.