Greek Bond Buybacks Discussed at Meeting

Wall Street Journal
June 27, 2011

A meeting in Rome between representatives of private and official lenders to Greece discussed a variety of proposals to deal with the country's debt problems, including the possibility of financing buybacks of Greek government bonds, said someone familiar with the discussions.

The proposal for purchases of Greek bonds, possibly financed by funds from European governments, the International Monetary Fund or from Greek privatizations, was one of a number floated at the meeting. The person said a proposal put forward by French banks for ensuring private-sector participation in a new bailout for Greece was "one of a number, alongside buybacks and other techniques."

Some in the meeting argued that the buyback proposal, calling for the purchase of longer dated Greek bonds at a discount to face value, "had the potential to change market dynamics for Greece'" the person said.

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