BRUSSELS Oct 27 Private owners of Greek bonds
will accept a 50 percent writedown on their investment, enabling
both a 100 billion euro cut in Greece's sovereign debts and
allowing a new Greek programme of aid of 100 billion euros,
German Chancellor Angela Merkel said on Thursday.
"Our goal is that the debt of Greece by 2020 is 120 percent
(of GDP)," Merkel told journalists after a meeting of euro zone
"A nominal haircut of 50 percent has been agreed. On the
basis of this, we will have a new programme for Greece with a
value of 100 billion euros."
She said the public sector would make a further 30 billion
euro contribution towards private sector participation.
Merkel also said that Greece would be subject to closer
supervision in future.
"There will be a reinforced monitoring regime in connection
with the fulfilment of the Greek obligations," she said.
"That will be anchored in a memorandum of understanding.
There will be a permanent presence there. It will be possible to
monitor the measures taken by Greece. I think that this is
better than when every three months a 'troika' travels there and
back, a permanent system of supervision."