Germany’s finance minister believes Greece could slice 20 billion euros of its massive debt burden by buying back its own bonds, according to the weekly Der Spiegel , due out Monday.
This scenario, one of several it envisaged, was the one the ministry thought most likely to win consensus in Europe, the weekly added.
The European Financial Stability Facility (EFSF) could lend the money to Greece so it could buy back bonds from private creditors at market prices, Der Spiegel reported.
Thanks to its AAA status with the ratings agency, the EFSF could easily raise the money required in the markets and lend it to Greece at favorable rates it can no longer find on the open market.
European sources told AFP that this scenario has been put forward during recent talks between eurozone leaders.
Another German proposal would involve the exchange of existing Greek bonds for ones that mature over a longer period.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
