ECONOMY

German banks: don’t hike Greek bailout contribution

German banking association BdB on Thursday warned against re-negotiating a 21 percent haircut on Greek sovereign debt agreed by lenders, saying it would lead to further distrust.

“The private sector has voluntarily agreed to a 21 percent haircut on Greek sovereign debt, which corresponds to about 30 billion euros for the stabilization of the Greek economy and fiscal situation,» BdB chief Michael Kemmer said in a statement to Reuters.

“This crisis can only be overcome by re-establishing the necessary trust in political actions. If the governments re-open negotiations on the agreed deal, the result will be exactly the opposite.”

Although private creditors were willing to make a contribution toward a Greek private sector bailout, Kemmer said that «a deal is a deal.» [Reuters]