Germany seeks burden-sharing in new Greek bailout

EUROPEAN paymaster Germany stuck to its guns yesterday in demanding that private investors contribute to a second bailout for Greece despite a European Central Bank (ECB) warning against triggering market turmoil.

German Finance Minister Wolfgang Schaeuble urged parliament to back additional aid for the heavily indebted euro zone country but said private creditor participation in a new package was “unavoidable” and reiterated he favoured a bond swap that would push out Greek debt maturities by seven years.

The Bundestag lower house approved a non-binding resolution supporting extra emergency loans to Greece, but only on the condition that bondholders be made to share the burden.