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the creditor countrybank cannot be outbid by the debtor country for bonds held by third parties
Anyway, I don't think the creditor bank wants to buy bonds in the secondary market. It's better for them to lend to the creditor country to lend to the debtor country to repay the bonds until 2013, when presumably the bonds held by the creditor bank have matured and all that's left is debt owed by the debtor country to the creditor country.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Wed Apr 6th, 2011 at 08:55:47 AM EST
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