FRANKFURT (MNI) – Germany’s Economy Minister Philipp Roesler is
pushing for an orderly sovereign debt restructuring mechanism for the
Eurozone that would include private sector involvement, German daily
Frankfurter Allgemeine Zeitung reported Monday.
Citing a letter sent by Roesler’s State Secretary Stefan Kapferer
to Germany’s Deputy Finance Minister Joerg Assmussen, the newspaper
reported that Roessler wants the mechanism to be included in the
permanent Eurozone bailout mechanism, the ESM.
According to the proposal, procedures would be activated as soon as
a country could no longer service its debt independently.
The ESM should only offer financial aid if there is a “a credible
consolidation program” and “appropriate creditor contribution,”
according to the letter. Should creditor and debtor fail to agree on a
deal, it would be met with severe financial disadvantages for both
parties, the paper said, citing the letter.
–Frankfurt newsroom +49 69 72 01 42; e-mail: frankfurt@marketnews.com
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