EU Plans Easier Restructuring of Euro Zone Bonds From 2022

European Union finance ministers are on Thursday discussing new rules that would make it easier to restructure euro zone sovereign bonds, a draft document shows - a move that could drive up yields of high-debt states, Reuters reported. Under the measure, part of a set of reforms that could be approved at Thursday’s meeting, holders of debt issued by one of the 19 euro zone countries would find their power to block bond restructuring or haircuts vastly reduced. If approved, it would apply to bonds issued on or after Jan. 1, 2022 and with maturities above one year, the confidential document seen by Reuters says. Its proposed “single-limb aggregated voting” structure would allow decisions over bond restructuring to encompass all bonds issued by a state. Read more

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