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German banks to forego Greek debt
05:55 AM Feb 27, 2010
FRANKFURT - Several major German banks will forego purchases of Greek government bonds owing to concern over the country's financial situation, a press report said.
The two biggest German banks in the sovereign debt sector, Eurohypo and Hypo Real Estate, have decided they will no longer buy new Greek bonds at the next issuance," the Financial Times Deutschland reported.
Postbank, which has Germany's biggest retail network has taken a similar position and for two major regional banks, BayernLB and LBBW, the chances of subscribing to Greek debt are "very unlikely," it added.
The news came as the Greece's Finance Ministry said on Friday that its plans this week to sell between US$2 billion ($2.8 billion) and US$10 billion of global bonds in the US and Asia, had been pushed back. It did not set a new date for the bond sale roadshow, but an official told Dow Jones Newswires it might take place in mid-March.
Meanwhile, European Union inspectors in Greece have found additional measures amounting to ?3.6 billion ($6.9 billion) are needed to cut the budget deficit to 8.7 per cent of output this year, Ta Nea newspaper reported.
The inspectors said Greece faced the risk of a deeper recession than forecast and higher interest on debt payments. Its economy will shrink 2 per cent this year, compared to a government forecast of 0.3-per-cent growth.
05:55 AM Feb 27, 2010
FRANKFURT - Several major German banks will forego purchases of Greek government bonds owing to concern over the country's financial situation, a press report said.
The two biggest German banks in the sovereign debt sector, Eurohypo and Hypo Real Estate, have decided they will no longer buy new Greek bonds at the next issuance," the Financial Times Deutschland reported.
Postbank, which has Germany's biggest retail network has taken a similar position and for two major regional banks, BayernLB and LBBW, the chances of subscribing to Greek debt are "very unlikely," it added.
The news came as the Greece's Finance Ministry said on Friday that its plans this week to sell between US$2 billion ($2.8 billion) and US$10 billion of global bonds in the US and Asia, had been pushed back. It did not set a new date for the bond sale roadshow, but an official told Dow Jones Newswires it might take place in mid-March.
Meanwhile, European Union inspectors in Greece have found additional measures amounting to ?3.6 billion ($6.9 billion) are needed to cut the budget deficit to 8.7 per cent of output this year, Ta Nea newspaper reported.
The inspectors said Greece faced the risk of a deeper recession than forecast and higher interest on debt payments. Its economy will shrink 2 per cent this year, compared to a government forecast of 0.3-per-cent growth.
