June 28, 2011
Talks about how to get private investors to contribute toward a new bailout for Greece widened Monday to include a possible buyback of Greek government bonds, but people at a meeting in Rome discussing the issue said there were no guarantees that proposals under consideration wouldn't lead to a default.
The Rome meeting was the first gathering of Greece's official and private creditors, together with Greek government officials, since the Greek debt crisis began more than 18 months ago.
The efforts to get a meaningful private-sector contribution to the bailout, as demanded by Germany and other governments, face a tight deadline. Finance ministers of Greece's fellow members of the 17-nation euro zone will meet to discuss a new rescue on Sunday—assuming the Greek parliament agrees to a package of austerity measures this week.
People familiar with the creditor discussions said they mainly revolved around an "umbrella proposal" by French banks to reinvest 50% of the proceeds from Greek government bonds that mature in coming years into new 30-year Greek bonds. A further 20% would be set aside to provide guarantees of ultimate repayment—and holders of the bonds would expect to benefit from higher returns if Greece's economy performs well.
More
No comments:
Post a Comment