Merkel, Lagarde Meet Over Greek Debt Swap

International Monetary Fund Director Christine Legarde and German Chancellor Angela Merkel are slated to meet in Berlin this evening to discuss the process for completing the next phase of the rescue plan for Greece. The deal was drafted last October and was centered on a payout of 50 percent for Greek bondholders. The deal also included a debt target for Greece intended to reduce Greece's deficit to 120 percent of total GDP by 2020.

Despite the announcement of the deal, discussions are still underway to determine the exact payout and there is mounting concern that failure to finalize the deal will delay the transfer of funds in time to avoid a wider default. The resulting confusion is also undermining confidence in the Eurozone.

“All non-European investors except a few bargain hunters will keep clear of investing in the euro area,” said Espen Furnes, an Oslo-based fund manager at Storebrand Asset Management, which oversees $72 billion.

Source: Bloomberg