*EURO LEADERS RENOUNCE SENIORITY ON SPAIN LOANS
We reaffirm that the financial assistance will be provided by the EFSF until the ESM becomes available, and that it will then be transferred to the ESM, without gaining seniority status.
This is
a) Progress in eurozone leaders’ understanding of how bond markets work; a viable plan especially given the crucial movement towards direct official recaps for banks
or
b) Simply unbelievable, based on past practice in Greece; plus they can happily leave seniority implicit until a restructuring anyway
You choose.
Related link:
Ulysses contracts – Allianz
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