Saturday, January 22, 2011

EU's Juncker: Not Taboo for Greece and others to buy-back debt

by Calculated Risk on 1/22/2011 02:39:00 PM

From Reuters: Don't rule out debt buy-back idea: Juncker (ht Rajesh)

European leaders should not shy away from a proposal to buy back the bonds of troubled euro member states but should not rely too much on rich countries, Eurogroup Chief Jean-Claude Juncker said.

"It would be wrong to create taboos but we cannot overstretch the strong countries," Juncker said in an interview with German magazine Der Spiegel seen by Reuters on Saturday ahead of publication.
I'm not sure if this proposal will go anywhere, but many analysts like the idea of Greece buying their debt with money from EFSF.