ND skeptical of haircut deal
A deal to impose a 50 percent haircut on Greek debt was met with skepticism from the country’s conservative opposition on Thursday.
?The haircut was inevitable because the government’s economic policy failed,? New Democracy spokesman for economic affairs Christos Staikouras told Skai television on Thursday, adding that the conservatives will not back a deal so long as the economic policy mix against the debt crisis remains the same.
The haircut cannot make the Greek debt sustainable, the conservative politician said, adding that this would require a primary surplus and economic growth.
During lengthy negotiations in Brussels that went on in the early hours of Thursday, European leaders persuaded bondholders to take 50 percent losses on Greek debt and boosted the firepower of the rescue fund to 1 trillion euros ($1.4 trillion), responding to global pressure to step up the fight against the financial crisis.
