Brussels, 13/07/2011 (Agence Europe) - The eurozone is considering buying Greek bonds at market rates in order to ease the public purse in Greece, explained the head of the European Investment Bank (EIB), Philippe Maystadt, on Belgian television on Tuesday 12 July. He said an idea had been put forward that was supported by the European Central Bank and the European Commission and which would now be discussed, whereby the European Financial Stability Facility (EFSF) would be allowed to buy up Greek bonds at market rates. This would result in the holders of bonds suffering a considerable write-down.
Maystadt said there was a clear objective, namely to ease the burden of the Greek debt by reducing it as a percentage of the country's GDP. Buying up bonds would achieve this aim.
The EIB president said that the president of the European Council, Herman Van Rompuy, was considering convening a special summit of eurozone leaders (possibly this Friday) to prevent any spread of the debt crisis to Italy and Spain because the markets hated uncertainty and when things are not clear, they immediately assume the worst and therefore have to be reassured. To achieve this, a clear, final solution to the Greek debt crisis needs to be announced very rapidly and the crisis needs to be stooped in its tracks. Maystadt hoped heads of state would be able to make a clear statement over the following days about how they aim to ease the Greek debt burden. (O.L./transl.fl)