June 1 (Bloomberg) -- The euro erased an advance versus the dollar on speculation European Union officials may seek to encourage bondholders to continue lending to Greece.
The euro was little changed at $1.4397 as of 11:39 a.m. in London after advancing as much as 0.4 percent to $1.4448.
Investors may be offered preferred status, higher coupon payments or collateral as inducements to buy bonds replacing Greek debt maturing between 2012 and 2014, said two people with knowledge of discussions by policy makers, who declined to be identified because the talks are in progress.
So-called negative incentives are also under consideration, such as cutting off old Greek bonds from eligibility for use as collateral with the European Central Bank, the people said.
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