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ECB Exchanging Greek Bonds For New Ones: Report

2/16/2012 10:36 PM ET

The European Central Bank is currently swapping Greek government bonds with new ones at their face value, Germany's Die Welt newspaper reported Thursday.

The newspaper, quoting well-informed sources, said the swap will be completed by Monday. The ECB has an estimated EUR 50 billion worth Greek government debt holdings.

The ECB is generating a profit by getting face value for the bonds, which they purchased at a discounted price. The profits will be distributed through national central banks to the governments, the newspaper said.

Die Welt said that this is a technical operation, which ensures that the central bank stays out of the private sector debt swap deal.

by RTT Staff Writer

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