NEW YORK TIMES: …Bankers and officials involved in the discussions say that bondholders have made significant concessions with regard to the interest rate, or coupon, that the new Greek bonds would carry. Having insisted previously on an average rate above 4 percent, creditors now seem willing to accept an a rate below 4 percent for the 30 year bonds — perhaps as low as 3.6 percent. …
On top of the 50 percent nominal loss, or haircut, already agreed, the lower coupon would produce a total loss for bondholders of more than 70 percent.
The latest progress comes at a tense time for Greece. Officials from the three institutions that are keeping the near-bankrupt nation financially afloat — the European Commission, the monetary fund and the European Central Bank — are demanding another round of spending cuts and reforms in order to justify a release of as much as 30 billion euros ($39 billion) in the months ahead. … (more)
