Ackermann Says Greek PSI Participation Will Be ‘Substantial’
February 23, 2012, 1:33 AM ESTBy Aaron Kirchfeld
Feb. 22 (Bloomberg) -- Josef Ackermann, Chief Executive Officer of Deutsche Bank AG and Chairman of the Institute of International Finance, said the participation of private holders of Greek bonds will be “substantial” in a voluntary debt swap announced yesterday.
“It’s expensive but a good gesture by the investor community,” Ackermann told reporters on the sidelines of an event in Frankfurt today. The swap agreement aims to prevent contagion from Europe’s debt crisis, he said.
The region’s leaders yesterday ended seven months of negotiations, awarding Greece 130 billion euros ($172 billion) in aid it needs to avoid a March bankruptcy. Ackermann participated in negotiations in his IIF role.
Investors agreed to forgive 53.5 percent of their principle and exchange their remaining holdings for new Greek government bonds and notes from the European Financial Stability Facility, the IIF said yesterday after a final round of talks.
To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net
To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net
