FRANKFURT: Germany's public-sector landesbanks on Monday welcomed the decision to involve private sector holders of Greek debt on a voluntary basis.
German public-sector banking association VOEB, which represents regional Landesbanken including BayernLB, HSH , LBBW, Helaba , NordLB and WestLB , said the decision to involve private bondholders on a voluntary basis was "the right way".
Euro zone finance ministers on Monday pledged to pay a 12 billion euro ($17.2 billion) tranche of emergency loans in July -- provided the Greek parliament first passes new austerity steps -- that is expected to keep Greece afloat into September.
Like the first bailout, a 110 billion euro ($156.5 billion) loan package, the second bailout will include huge amounts of official aid but foresees the inclusion of the private sector.
Copyright Reuters, 2011
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