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IIF says Greek debt buyback must be 'voluntary'

Published on Nov 30, 2012 7:14 AM

NEW YORK (AFP) - A powerful international bank lobby warned on Thursday that the outcome of Greece's looming debt buyback program remains uncertain and warned that it must be "purely voluntary."

The Institute of International Finance's (IIF) Market Monitoring Group welcomed a third EU-IMF aid programme agreed on Nov 27 as important to cutting Greece's debt and helping it avoid default.

But the IIF body that "uncertainty remains" surrounding the plan, especially regarding Athens's planned buyback of debt, a linchpin of the deal that will reduce its interest burden and free up new funds from its lenders.

"A voluntary debt buyback is assumed by the Euro Area to be instrumental to reducing Greece's debt-to-GDP ratio, allowing program disbursement," it said in a statement following New York meetings.

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