Euro zone ministers want to try Greek debt buy-back at 35 cents a euro-source

BRUSSELS Mon Nov 26, 2012 7:10pm EST

BRUSSELS Nov 26 (Reuters) - Euro zone finance ministers have agreed to launch a voluntary buyback of Greek debt and will offer private investors 35 cents for each euro of Greek bonds they hold, a source familiar with the discussions of the ministers said.

The debt buyback is one of a series of measures euro zone finance ministers have agreed with the IMF to try to reduce Greek debt to around 124 percent of GDP by 2020, from a forecast 190 percent next year.

It remains unclear how the buyback would be financed, but one proposal is to lend Greece around 10 billion euros from the euro zone's rescue fund, which would allow it to buy around 30 billion euros worth of debt, cutting its outstanding obligations by around 20 billion euros.


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.