The Greek default is inevitable and will be carried out in an “orderly” manner, Italy’s AGI news agency quoted a senior Fitch official as saying on Monday at a conference in Stockholm.
"It is going to happen. Greece is insolvent so it will default,” Managing Director for Sovereign and Supranational Group in Europe, the Middle East and Africa Edward Parker said at a conference in Stockholm. “It shouldn't be a surprise to anyone."
Greece is in talks with private investors under the private sector involvement (PSI) program, which envisages a 50 percent writedown in the face value of its debt, or about 100 billion euros.
PIMCO chief executive Mohamed El-Erian said a writedown of 50 percent will be insufficient, as it would “still leave open way too many questions about Greece's economic and financial outlook, which would not simulate growth."
If the Greek government fails to agree with private investors, Greece will not receive another tranche of international financial aid and will default on its debt in March.