German banks would have paid Greece more
The Local · 24 Jul 2011, 12:13
Published: 24 Jul 2011 12:13 GMT+02:00
According to Sunday's Welt am Sonntag newspaper, Deutsche Bank would have agreed to writing off 50 percent of the debt it was owed by Greece, which would have cost the bank €300 million.
In the end, the deal that was reached allowed a debt cut of 21 percent, which many commentators have said is well below what is necessary. According to the paper's unnamed sources, this will even allow Deutsche Bank to make a small profit.
The Munich-based insurance giant Allianz, along with Commerzbank, were reportedly also prepared to offer a 30 percent debt cut.
A spokesman for Deutsche Bank refused to comment on the report.
The French banks, which have considerably more invested in Greece than German banks, were apparently instrumental in driving the value of the debt aid during the summit.