Restructuring denial not convincing

Greece?s continual denial that it is looking into restructuring its debt is failing to ease concerns regarding the possibility of investors being stuck with losses on Greek bond holdings.

Finance Minister Giorgos Papaconstantinou on Wednesday ruled out any restructuring of the country’s crippling debt burden, saying that reforms being put in place in Greece would lead to growth and make debt sustainable.

?We can generate jobs and investments and we are not changing track,? Papaconstantinou told a conference.

The major reforms that are taking place will ?lead to growth that will avoid the need for restructuring,? he said.

He said that exports were recovering and repeated a forecast that the country would see growth in the final quarter of this year.

As the minister spoke in Athens, Greek government bonds declined, sending the 10-year yield six basis points higher to a record 12.93 percent.

Rating agency Standard

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