German Fin Min says no public sector haircut for Greece

BERLIN Thu Nov 22, 2012 9:05am EST

BERLIN Nov 22 (Reuters) - German Finance Minister Wolfgang Schaeuble reiterated his opposition on Thursday to a writedown of public holdings of Greek debt as part of any deal between the country's international lenders.

"The moment we decide to give Greece a haircut, we cannot give Greece any new guarantees - that is logical because the budget law rightly says you can only take on guarantees if you believe that the debt will be paid back so you can't do both," Schaeuble told a conference on trade.

He added that predictions of a catastrophe made by financial experts before a previous agreement for the private sector to take a haircut had turned out to be wrong.

Euro zone finance ministers, the European Central Bank and the International Monetary Fund meet again on Monday to try to agree on how to bring Greece's debt level down to a sustainable level after they failed in two weeks running.

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