Germany adds to Greek jitters

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The Independent Online

Greece's cost of borrowing on the bond markets jumped sharply yesterday after Germany's Finance Minister, Wolfgang Schäuble, called for "a quantified and substantial contribution" from bondholders as a condition for a new aid package from the European Union. In a leaked letter to his eurozone colleagues, Mr Schäuble suggested extending Greek bond maturities by seven years.

Rainer Guntermann, at Commerzbank, noted rating agencies have said a voluntary debt rollover would most likely count as a default and that the ECB has said that in such circumstances it would not accept Greek government bonds as collateral: "With this approach the German Finance Minister is openly clashing with the ECB... [the] meeting is getting even more interesting."