Major Banks and Insurers Are Asked to Assist in a 2nd Greek Rescue Package

New York Times
June 22, 2011

Efforts to prevent a Greek default accelerated on Wednesday when at least three euro zone governments called in representatives of large banks and insurers to urge them to contribute to a second large rescue package.

A German government official confirmed that talks had begun with banks over possible participation in a second Greek bailout but declined to speculate on the amount that the private sector might produce. Germany has said it is opposed to anything but voluntary private-sector involvement in future rescues.

The French insurers’ association, F.F.S.A., said insurance companies had been invited to discussions with French government officials. Germany and France are among the euro zone countries most exposed to Greek debt.

The Dutch finance minister, Jan Kees de Jager, said Wednesday that he was hopeful his government could encourage the country’s banks to play a role in a second Greek rescue.

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