IMF to Throw Bondholders Under Bus

November 26th, 2013 9:37 pm | by John Jansen |

The New York Times is carrying this story which reports that the IMF will take a haircut from bondholders in any future bailouts. The agency apparently believes that bondholders should feel some of the pain of the citizens of profligate spending countries such as Greece and Portugal.

Here is Bloomberg summary of story:

By Theo Mullen
Nov. 26 (Bloomberg) — International Monetary Fund is
discussing a plan to impose upfront losses on bondholders the
next time a country in the euro area requests a bailout, New
York Times said, without saying where it got the information.
* IMF advocating more aggressive approach to debt
* Proposal being negotiated in private by economists and
lawyers at the fund
* Opposition seen from global banking lobby, European policy
Link to Story:

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  1. 2 Responses to “IMF to Throw Bondholders Under Bus”

  2. By Owe on Nov 27, 2013 | Reply

    Well, I think this is a step in the right direction to force investors to check the credit-worthiness of lenders and price accordingly.

  3. By John Jansen on Nov 27, 2013 | Reply

    If I had not been so tired when I found the article I would have written that myself. Thanks for the comment.

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