FRANKFURT |
FRANKFURT (Reuters) – European Central Bank policymakers are still divided on what contribution the ECB could make to a restructuring of Greece’s sovereign debt, two euro zone monetary policy sources said on Wednesday.
With private creditors having already largely agreed to write down the value of their Greek bonds, Athens and the commercial banks are calling on the ECB to accept some losses to help cut the debt to a sustainable level.
While the ECB has ruled out joining private creditors in voluntarily accepting a reduction in Greek bonds’ value, it could send Athens, via a roundabout route, the profits from bonds it bought at below face value.
But the ECB’s 23-member Governing Council has yet to agree a position, with some of the policymakers reluctant for the bank to show a willingness to share in the restructuring burden for fear of easing the pressure on Athens to agree spending cuts.
“There is no agreement yet. Some people on the Council still oppose this,” said one of the
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