Greece Requests Another Bailout Loan Extension, As Restructuring Chatter Continues

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Greece's Prime Minister George Papaconstantinou has requested an extension of the pay period on his country's IMF-EU bailout loans in an effort to avoid restructuring of his country's debt.

This would be the second time Greece had its bailout loan extended, as a similar action occurred in March.

This move was rumored over the weekend. But there are no guarantees it would prevent the need for a full blown restructuring of Greek debt. The €110 billion in bailout loans only make up one-third of Greek interest payments on sovereign debt in 2012.

The ECB has warned that the impact of a Greek debt restructuring on the market could be worse than the collapse of Lehman Brothers.

Don't miss: Who gets pounded in a Greek debt default >

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