Grosvenor Capital Advisors – European leaders meet to decide on a long term solution to the region’s debt crisis.
Grosvenor Capital Advisors understands that the meeting of officials from the Euro zone countries is to concentrate on creating a long term solution to the region’s debt crisis and finding a way to ease the substantial debt burden of Greece.
A meeting of European Union fiscal policy makers in Brussels is to decide on new budgetary rules, discuss a debt swap for Greece and protection measures for states in debt in a bid to formulate a firm plan for the next few months.
Grosvenor Capital Advisors has also learnt that discussions between Greece and its private creditors over Greece’s debt restructuring stalled. The plan is for old securities to be swapped out for new bonds with interest rates in the 4 to 4.5 per cent range but failed to reach a consensus on what interest rates would be applied after the International Monetary Fund and Germany insisted on a coupon rate closer to 3 per cent.
In October of last year, private investors and European officials agreed a 50 per cent cut of the 200 billion euro of Greek sovereign debt by agreeing to exchange their existing bonds for newly issued securities.
“Everyone recognizes that a deal has to get done,” said a senior economist with Grosvenor Capital Advisors who is attending the talks, “but there will be a lot more sparring to get through before we reach a consensus.”