January 24, 2012
Greece's private creditors pleaded on Tuesday with European officials who rejected their bond swap offer to hammer together a deal before Athens tumbles into a chaotic default.
Athens' hopes for a swift deal with lenders were evaporating after euro zone ministers on Monday rejected creditors' demand for a 4 percent coupon, or interest rate, on new, longer-dated bonds in exchange for existing debt.
The country is desperate for a deal to ensure funds from a 130 billion euro rescue plan drawn up by European partners and the International Monetary Fund arrive before 14.5 billion euros of bond redemptions fall due in March.
"It's important that all parties recognize how much we have at stake and work together and cooperate to find a solution," said Charles Dallara, who negotiates in the name of private bondholders through the International Institute of Finance.
He declined to comment on whether his group would back down on the demand for a 4 percent coupon billed as their "final offer" and said their position was already clear. Greece says it is not prepared to pay a coupon of more than 3.5 percent which would impose steeper losses on its private creditors.
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