ECONOMY

Citi sees no wrongdoing; Greece looks into email

US investment bank Citigroup said on Thursday it had done nothing wrong after Greece launched a probe into market rumours that a restructuring of the country’s sovereign debt will take place over the Easter weekend.

Greek officials said on Thursday that an investigation launched by a Greek prosecutor late on Wednesday was prompted by an e-mail sent by a Citigroup employee.

“We are cooperating with the authorities and do not consider there to have been any wrongdoing by Citi or its employees,» Citi said.

Greek bank stocks dropped 4.6 percent on Wednesday and Greek bond spreads further widened on what traders said were rumours spread by email that the country would soon restructure its debt.

Investors increasingly believe Greece will have to negotiate with its creditors and impose «haircuts» on bond-holders, meaning they will not get all of their money back, but speculation is rife about the timing of any restructuring.

The Finance Ministry said rumours about an Easter deal were «devoid of any substance and verge on the ridiculous» but promised to pursue the culprits with «all legal means available».