Greek Bond Yields Drop After EU Could Extend Loans

Greek bond yields fell sharply on Wednesday after a media report said European Union officials were weighing extending the maturity of loans to Athens to 50 years, which could ease the debt burden on Greece.

Citing two officials with knowledge of the discussions, Bloomberg said the next bailout for Greece may include extending the maturity to 50 from 30 years, and cutting the interest rate on some previous aid.

An official close to Greece’s debt negotiations with the troika had told Reuters as early as October that Greece may swap a big chunk of its bailout loans with a 50-year government bond as a way to achieve debt relief once it attains a primary budget surplus this year.

via CNBC

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