http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a6vULcKCWS9Q
“The best combination to achieve a sustainable Debt/GDP is through a combination of measures and a 40 percent haircut,” Citigroup Inc. analysts, including London-based Stefan Nedialkov, said in an e-mailed note today. A “haircut” would translate into losses for holders of Greek government bonds
Piraeus Bank SA, Greece’s fourth-biggest lender, and state- controlled Agricultural Bank of Greece SA and Hellenic Postbank SA are the “most vulnerable” Greek lenders in the event of a haircut, according to Citigroup, which has a “sell” rating on the three.
Citigroup said that no country with a debt-to-GDP ratio of over 150 percent has “ever avoided a default.” Greece’s austerity measures aren’t achieving the “desired results as quickly as hoped,” it said.
As for the analysis of which European banks will suffer the biggest capital income in case of a 50-60% haircut, not surprisingly the list is topped off by France, Germany, Austria and Belgium.
“The best combination to achieve a sustainable Debt/GDP is through a combination of measures and a 40 percent haircut,” Citigroup Inc. analysts, including London-based Stefan Nedialkov, said in an e-mailed note today. A “haircut” would translate into losses for holders of Greek government bonds
Piraeus Bank SA, Greece’s fourth-biggest lender, and state- controlled Agricultural Bank of Greece SA and Hellenic Postbank SA are the “most vulnerable” Greek lenders in the event of a haircut, according to Citigroup, which has a “sell” rating on the three.
Citigroup said that no country with a debt-to-GDP ratio of over 150 percent has “ever avoided a default.” Greece’s austerity measures aren’t achieving the “desired results as quickly as hoped,” it said.
As for the analysis of which European banks will suffer the biggest capital income in case of a 50-60% haircut, not surprisingly the list is topped off by France, Germany, Austria and Belgium.
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