EU Plans Greek Buyback Program Open to All Debt, All Investors
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The buyback of Greek debt, part of the nation’s second bailout, should be broad-based and occur at the same time as a bond swap now being negotiated, according to a European Union planning document.
The document, which wasn’t intended for release to the markets, says the operation would be open to all investors and include all of Greece’s outstanding government bonds. It also recommends making the buyback conditional on the debt swap, in order to minimize the amount of time that rating companies consider Greece to be in “selective default.”