Greece may arrange a 50% debt restructuring this weekend

It is possible for Greece’s government to reach an agreement with private creditors on partial debt restructuring this weekend. On that informed the European Commissioner for economic and political affairs Olli Rehn on the World Economic Forum in Davos.

EU authorities demanded that private investors write down up to 50% of Greek debt which is expected to lower the country’s debt burden for 100 billion euro. Reaching the agreement with private investors is one of the key conditions to receive another package of financial support (however, some say that even 50% won’t change the wheather).

Without additional financial support from the EU and the International Monetary Fund the country will have to declare default anyway. However, German finance minister Wolfgang Schauble told at the forum that they didn’t expect that from Greece.