Bloomberg News

IIF’s Dallara Says Greek Debt Deal ’Makes Sense for Investors’

October 27, 2011

Oct. 27 (Bloomberg) -- Charles Dallara, managing director of the Institute of International Finance, said the Greek debt deal “makes sense for investors” because it is voluntary and under English law and the net present value will remain in “clearly manageable proportions.”

Details of the transaction such as coupons, maturities and the structure of the 30 billion euros in collateral for the new debt provided by euro zone member states must still be determined, Dallara told reporters at a briefing in Brussels today.

The deal should not trigger credit default swaps, deputy Managing Director Hung Tran said. The IIF and officials will explore “different options” for the 30 billion euros in collateral such as European Financial Stability Facility instruments, which is “key” to the NPV, and it will be a AAA zero coupon instrument, Tran said.

To contact the editor responsible for this story: Aaron Kirchfeld at

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