Bloomberg News

Juncker Says Greece Downgrade Was Prepared for in PSI Planning

February 27, 2012

Feb. 27 (Bloomberg) -- Standard & Poor’s decision to lower Greece’s credit rating to Selective Default, was “duly anticipated and taken into account in the planning of the PSI operation,” Luxembourg’s Prime Minister Jean-Claude Juncker, who also heads the group of euro-area finance ministers, said in an e-mailed statement today.

Euro area member states are putting in place procedures that will permit “the provision by the EFSF of a buy back scheme (collateral enhancement) allowing for the eligibility of marketable instruments issued or guaranteed by the Greek government for use as collateral in Eurosystem monetary policy operations for the period of the SD ratings,” Juncker said in the statement.

Juncker called for the “high participation of private creditors in the PSI operation” and said he takes note of S&P’s intention to upgrade the lower ratings following the settlement of the bond exchange, according to the statement.

To contact the editor responsible for this story: Blanche Gatt at bgatt@bloomberg.net


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