A leading global ratings agency has warned that a plan that relies on voluntary investor participation in a Greek restructuring is not realistic, according to Bloomberg. On Thursday, Moodys Investors Service managing director Bart Oosterveld said that voluntary investor support of a Greek restructuring is hard to imagine, adding, The default risks for peripheral European countries continues to increase. Oosterveld said, We think the eurozone leaders are well incentivized to provide liquidity support and limit contagion.
The warning comes as the European Union and International Monetary Fund are trying to expand the aid program for Greece to meet the countrys financing needs. The international community is said to have created a new plan that would see Greece receive 45 billion in aid to avoid a default. The country is estimated to be facing a financing gap as wide as 170 billion from 2012 to 2014, which would need to be filled by new loans in addition to 57 billion that remains from the bailout received last year.