German institutes say Greece needs another ‘haircut’

Greece cannot be saved without further debt restructuring, Germany’s leading economic institutes said on Thursday, adding that was the best way for Athens to return to sustainable debt levels.

Asked whether investors in Greek debt would need to accept another haircut, or reduction in the value of their holdings, Joachim Scheide, head of forecasting at Kiel-based IfW institute, said: ?Yes, we don’t think Greece can be saved.?

The International Monetary Fund wants official lenders such as Germany to take a ?haircut? along the lines private bondholders already swallowed earlier this year. [Reuters]