According to a report in German tabloid Bild, Deutsche Bank considers the possibility of a haircut of Greece’s public debt by the end of the year ‘inevitable’.
In its report, the German tabloid cites a classified Deutsche Bank internal document which allegedly states that the Greek debt must be reduced by about 200 billion euros. This turns out to about 700 euros for each citizen in the Eurozone, states Bild.
The newspaper article further notes that by then end of 2015 Greece’s public debt will be 340 billion euros, 200% of the GDP, far more than what European conventions allow. This in turn means that no economist truly believes that Greece will be able to pay off its debts.
The tabloid however adds that should a haircut of the Greek debt be deemed necessary, the decision to carry it out will be less of a financial one and more of a political one, which will be made after talks between Athens and its creditors.