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The creative method was probably found for a default of Greece. A so-called “Brady plan” – this plan means an offer for a  haircut to current bond holders – they’ll get the option for an “exit” on their bonds, with around 75% of the potential, but above their current price.

Reuters reports about the 25% haircut, at least at this stage:

Under the three-stage plan, Greece would borrow from the euro zone’s new rescue fund to buy back Greek bonds currently owned by the ECB and private bondholders at about 75 percent of their nominal value, the newspaper reported, citing a senior banker with knowledge of the talks.

The EU and the International Monetary Fund (IMF) would then extend the maturity of their bailout loans to Greece to 30 years. Private lenders owning more than 100 billion euros of Greek bonds would be invited to extend their maturity to between 15 and 20 years, To Vima said.

EUR/USD is struggling with the 1.3576 support line. The weakness is more due to the Egyptian crisis that overshadows all other news, including this “Brady plan” proposal.

See more levels in the EUR/USD forecast.

Greek prime minister George Papaconstantinou  is persistent with denying a default or “restructuring”. I wonder what creative words will be used to explain that this move isn’t restructuring. I hear the scissors of a haircut…