June 13, 2019
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.
The new measure, if approved, would apply to bonds issued after Jan. 1, 2022 and with maturity above one year, the draft document says.
(Reporting by Francesco Guarascio; Editing by Toby Chopra)