Signals that the endless fumbling over Greece's second bail-out will end in debt restructuring prompted investor flight from core euro-zone countries as well as peripheral ones.
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Will investors have to chip in with debt restructuring or even bond defaults?
Also if there was a debt restructuring in Cyprus their holders of the debt, largely banks and pension funds, would have had to have a capital injection from the European bail out fund.
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Greece was also in the spotlight, as European Central Bank executive board member Joerg Asmussen said the central bank won't take part in any potential debt restructuring of the debt-laden country.
By the end of the year, rumours will be rife of an imminent public-debt restructuring in Greece.
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Investors were furious that Eurobonds were to be included in Pakistan's debt restructuring.
These are dollar-denominated debts named after an American Treasury secretary, Nicholas Brady, who helped to supervise Latin America's debt restructuring in the late 1980s.
The ECB's insistence on being excluded from the Greek sovereign-debt restructuring in March, which resulted in bigger losses for private bondholders, has set a worrying precedent.
It pushed for the private-debt restructuring in Greece.
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But even if the leaders have silenced questions about debt restructuring in other countries (and that is a big if), they may have done so only at the cost of keeping the question wide open for Greece.
For these countries Mr Ghosh and his co-authors advocate debt restructuring in advance of monetary easing. (The IMF has also recommended a swift entry to the euro.) But otherwise, their macroeconomic prescriptions are very IMF 1.0: if a parity is to be defended, high rates will be needed.
As the threat of a Greek debt restructuring sank in, Southern Europe's bond markets grew volatile.
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Also there is increasing political uncertainty in Germany over the Greek debt restructuring.
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On Monday, the company said it was looking for new financing and was negotiating with creditors in hopes of restructuring its debt.
Stocks opened in positive territory and maintained the early gains through the afternoon as investors weighed news reports of rising private-sector participation in Greece's debt-restructuring plan.
The big thing in Europe at present is the euro: will it survive the likely debt restructurings in Greece (the certain restructuring in Greece), Ireland, Portugal, perhaps Spain and Italy?
In both countries, if it comes to a debt restructuring, there are probably easier targets for losses in the form of holders of domestic government bonds.
That would include mortgage debt which is forgiven as a result of foreclosure, as well as debt restructuring, short sale or deed in lieu of foreclosure, so long as the debt is associated with the purchase, building or improvement of your main home and even if that debt is considered recourse debt.
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Defaulting on debt is deflationary in nature and restructuring your liabilities is the only choice when you owe more money than you can pay back.
The country is quite capable of restructuring this debt in such a way that bondholders eventually could be made whole--or almost whole--in the years ahead.
And what is likely to happen in any restructuring of the Greek debt is that the debt held by the official institutions does not suffer a haircut.
The credit rating agency noted that the bond buyback that the Hellenic Republic is conducting as a prerequisite to getting the next tranche of bailout aid from the Troika constitutes a distressed debt restructuring, which in their books means default.
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Banks are also raising their stakes in their most troubled borrowers, via debt-for-equity swaps, in return for tepid restructuring schemes.
So all in all, I think that Greek debt restructuring should not be on the agenda.
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There was a near-consensus in favour of restructuring Greece's debt.
Knowing this may influence the decision about whether the EU and IMF should require Greek bond holders to share in the pain with some form of debt restructuring, re-profiling or default.
In 2003 the Ourairat family, founders of the Phyathai Group, sued Wichai, claiming the debt restructuring he engineered with the banks diluted their stake in Prasit Patana to just 3%.
They are still nearly 10% up from their low point in June last year, however, reflecting a gradual return in confidence since the second restructuring of the country's sovereign debt and the accompanying recapitalization of its largest banks in February last year.
Bank of Cyprus, which was also exposed to Greek debt, might also be involved in the restructuring.
The next year the bond market roared back to life with a boost from the Federal Reserve, which allowed firms marred by bad capital structures to refinance billions in debt maturing by 2014 that was otherwise facing restructuring.
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