Bankers Ponder Greek Debt Options

Wall Street Journal
July 6, 2011

Bankers on Wednesday wrapped up their latest meeting on a private-sector contribution to alleviate Greece's debt crisis, and the chairman of BNP Paribas SA said they were now pondering a range of options.

"There are a number of technical propositions that have been made," said BNP Paribas chairman Michel Pébereau on French radio station BFM. "I hope we'll find a solution that satisfies those who don't want a default and at the same time the effort from the private sector to accompany the action of public powers."

The banks are trying to figure out a way to participate in a deal to repackage Greece's debts so that European taxpayers don't have to supply all the funds—but they want to do so in a way that avoids Greece being declared in default. The talks became all the more urgent as Moody's Investors Service downgraded Portugal's debt to junk status, highlighting the possibility of debt fears spreading further in the euro zone.

More