JP Morgan :Το κουρεμα δεν ειναι αρκετο

Greek Haircut

The banks’ resistance was broken by a threat “to move toward a scenario of total insolvency of Greece, which would have cost states a lot of money and which would have ruined the banks,” Luxembourg Prime Minister Jean-Claude Juncker said.
Still to be decided are the finer points of the write-off such as the collateral banks will be given in return and whether future bank debt is backed by a national or European guarantee. Banks and insurers will be asked to accept a writedown of half the nominal value of their Greek bonds.
That “haircut” aims to reduce the country’s debt level to 120 percent of gross domestic product in 2020, still twice the EU limit, though down from the 162 percent forecast for this year. Dallara said in Brussels today that he was confident the participation rate would “very, very high.”
The writedown will make Greece’s debt more sustainable though “this position is fragile and dependent on a set of rather optimistic macro assumptions,” said Nicola Mai, an economist at JPMorgan Chase & Co. If the country’s economy fails to rebound more debt restructuring may be needed, he said
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http://www.bloomberg.com/news/2011-10-27/europe-bolsters-crisis-fighting-tools-pledging-to-provide-details-later.html