Market Should Be Assured by Debt Deal: Greek Minister

Yes, assured that taxing bond holders works to lower deficits. That is, their public debt is sustainable after the PSI bond tax.

If anything, seems to me this kind of talk serves to keep investors away from any euro zone member debt.

Market Should Be Assured by Debt Deal: Greek Minister

By Reported by Silvia Wadhwa, Written by Catherine Boyle

March 12 (CNBC) — Greece has been tossed on the turbulent sea of global markets for almost two years now – but the bond swap deal secured on Friday should reassure markets about the country’s future, Greek Finance Minister and possible future prime minister Evangelos Venizelos told CNBC.

“Now we have a sustainable debt for a sustainable country,” he said. “And now we can persuade the market because we have a new, very important and very concrete argument: the sustainability of the public debt after the PSI (the private sector investor deal).”

“We have a very clear political declaration and position from the part of our institutional partners. We have a very clear statement from the part of the Eurogroup, but also of the Euro Summit. We have the support of the so-called “Official Sector” until the return of Greece in the market,” he added.

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