News Headline Summary

German finance minister backed Greek loan write-down at talks on Monday before backtracking according to sources

Sources says:
- Schaeuble support for write-down came at Paris talks with France, Spain, Italy, EU, ESM and IMF.
- Schaeuble one day later backtracked, rules-out write-down of principal in Eurogroup meeting.
- Schaeuble said gradual debt forgiveness possible from 2015 onward if Greece sticks to promises.

Update details:

- Earlier today it was reported that the German finance minister told lawmakers ECB believes Greece can raise EUR 9bln through T-bill issues and it is still open question whether 2020 or 2022 is benchmark for Greek debt sustainability according to a source.

Reaction details:

- No reaction across asset classes following these comments despite highlight a shift in view from the German official.

Print 17:41, 21 Nov 2012 - Economic commentary - Source: WSJ