In the wake of the French government, the German government has also reached an agreement with the banks on the Greek case. According to Economy Minister Wolfgang Schäuble, the German banks that signed the pact hold 10 billion euros in Greek public bonds, two of which maturing in 2014. The technical details on private involvement are not yet clear, but the the plan should largely follow the French agreement, according to Josef Ackermann, CEO of Deutsche Bank. Ackermann added that the banks' participation will be "voluntary, but substantial."
German lenders have exposure to Athens mainly in terms of bonds, while French lenders have indirect exposure, mainly through stakes in the capital of Greek banks. According to French plan, the coupons which will expire in 2014 will be converted, for 70% of their nominal value, into thirty-year bonds. Simply put, a one billion euro direct exposure will result in an immediate loss of 300 million and a new 700 million credit line, to be repaid by 2044 at the latest with annual interest to be determined.
