German financial institutions will roll over €3.2 billion of Greek debt to avoid its default, Financial Times reports. The banks will reinvest the proceeds of some of the Greek bonds currently due by 2014 by accepting new notes with longer maturities, adds The Wall Street Journal.
Germany’s private sector financial institutions, such as Deutsche Bank, Commerzbank, Landesbank Baden-Württemberg, DZ Bank and HypoVereinsbank, hold about €2 billion of the government bonds. The remaining €1.2 billion of Greek bonds are held by Germany’s state-owned ‘bad banks,’ which technically cannot be counted as a contribution of the private sector.
Click here for the story from Financial Times.
Click here for the additional coverage from The Wall Street Journal.