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Greek advisory body: debt needs to be written down

October 9, 2013

ATHENS, Greece (AP) — A Parliamentary advisory body says Greece will need to write down its public debt to make it manageable and attract direly-needed foreign investment.

In a report published Wednesday, the Parliamentary Budget Office warns the country will not be able to return to bond markets for financing in coming years unless the debt burden is lightened.

Greece depends on foreign rescue loans, granted in exchange for brutal spending cuts. It has committed to reduce its debt below 110 percent of annual output by 2022, from 175 percent this year.

Wednesday’s report says that would be impossible without writing down the value of its rescue loans — an option European creditors have ruled out — and getting easier bailout repayment terms.

Greece has already imposed steep losses on its private sector bondholders.

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