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EU considering easier restructuring of euro zone sovereign bonds: draft

Published 06/13/2019, 12:16 PM
Updated 06/13/2019, 12:20 PM
© Reuters. European Union flags fly outside the European Commission headquarters in Brussels

LUXEMBOURG (Reuters) - European Union finance ministers are discussing on Thursday new rules that would make it easier to restructure sovereign bonds issued by euro zone countries, a draft document seen by Reuters shows.

The measure is part of a wider set of reforms that could be approved at a meeting on Thursday. Under the overhaul, holders of debt issued by one of the 19 countries of the bloc could see their power to block bond restructuring or haircuts vastly reduced.

© Reuters. European Union flags fly outside the European Commission headquarters in Brussels

The new measure, if approved, would apply to bonds issued after Jan. 1, 2022 and with maturity above one year, the draft document says.

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