Bloomberg News

Greek Debt Relief Talks Face Hurdle of Demands, Ackermann Says

December 15, 2011

Dec. 15 (Bloomberg) -- Talks between Greece and creditors that agreed to take losses on the country’s debt as part of a rescue face a hurdle because of some demands, Josef Ackermann, chief executive officer of Deutsche Bank AG, said.

Financial firms agreed to writedowns of 50 percent on Greek sovereign debt “but, going further, putting it in Greek law, which is being demanded by some people, then we have no security anymore, and that’s where the negotiations are somewhat stalled,” Ackermann said today at a conference in Berlin.

The Deutsche Bank CEO helped broker deals on Greek sovereign bond losses between European leaders and investors earlier this year as chairman of the Institute of International Finance. The IIF has been pushing for a deal governed by English law.

Greece ordering its finances is “not possible without a debt writedown and then competition measures on the output side so that growth also comes back and the debt sustainability is improved,” Ackermann said. “That needs a common effort.”

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