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Deutsche Bank boss sees Greece debt deal

The Local · 27 Jan 2012, 16:06

Published: 27 Jan 2012 16:06 GMT+01:00

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Speaking to German television channel NTV on the sidelines of the World Economic Forum in Davos, Josef Ackermann said: "I am confident that a solution can be found."

He said the "haircut", or losses that banks were being asked to take on their holdings of Greek debt, was "almost 70 percent."

"That is a great, great deal. But everyone has to make their contribution and then we will see where we are. We're going to carry on," said Ackermann.

Negotiations between Athens and private creditors -- including Deutsche Bank -- aim to reach agreement on a voluntary exchange of bonds that would wipe €100 billion ($130 billion) off the country's debt of €350 billion.

The Private Sector Involvement (PSI) deal, agreed in principle in October, foresees creditors taking a "haircut" of at least 50 percent on the €200 billion in debt they hold. Deutsche Bank held around €900 million of Greek debt as of September 30.

Two previous rounds of talks have snagged on the amount of interest to be

paid on the new bonds following the exchange.

Adding to the growing sense of optimism, EU Economic and Monetary Affairs Commissioner Olli Rehn said he expected a deal to be clinched soon.

Story continues below…

Speaking in Davos, he said: "They're about to close a deal, if not today maybe over the weekend, preferably in January rather than February."

And Steffen Seibert, spokesman for German Chancellor Angela Merkel, also added that Berlin was "confident" that the talks would conclude soon.


The Local (news@thelocal.de)

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Your comments about this article

01:11 January 28, 2012 by jg.
This would be more believable if we had not been told several times in the last six months that a deal is about to be made or a solution has been found to resolve Greece's financial woes.
13:11 January 28, 2012 by christopheuk25
The whole save the Euro nonsense is a front.It's in it's death throes,if anyone has anysense they will move any money they have out of this black hole of fiscal incompetence and corruption.
10:21 January 29, 2012 by mos101392
I need a "haircut" too and I don't mean the barber type!

My debt is nowhere near what the Greek debt is. If it's ok to borrow money only to not have to pay it back, it would be very nice of them to clear my debt as well.

"He said the "haircut", or losses that banks were being asked to take on their holdings of Greek debt, was "almost 70 percent."
10:50 January 29, 2012 by McM
Ha, he borrows at 1 or 2 % on the back of German AAA rating and lends to Greece at 7 to 8% plus and has to write it down 70% .Roughly all square less the huge profit and his bonus haircut. It sure is hard being in banking.
14:52 January 29, 2012 by raandy
Its easy to make hay out of an inevitable loss, they were going to take the hit anyway. merely exchanging junk bonds for a lesser amount of real ones. This is just kicking cans down the road.
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