Bloomberg News

IIF Aims for ‘Progress’ on Greek Talks in Paris This Week

December 14, 2011

(Updates with October agreement in fourth paragraph.)

Dec. 14 (Bloomberg) -- The Institute of International Finance said it aims for “significantly more progress” in talks on a Greek debt swap scheduled for later this week in Paris.

The IIF’s creditor-investor steering committee, which is leading the talks on behalf of financial firms, met with Greek, European and International Monetary Fund officials in Athens on Dec. 12 and Dec. 13, according to an e-mailed statement from Washington-based spokesman Frank Vogl today.

IIF Managing Director Charles Dallara has said “that progress was made in the negotiations earlier this week and he is hopeful that significantly more progress can be made when the negotiations resume,” the IIF said. Any agreement needs to be entered into on a voluntary basis by current private bond holders, the IIF reiterated.

The IIF, which represents more than 450 financial firms, agreed in October in Brussels with European leaders to accept a 50 percent writedown in the face value of Greek sovereign holdings to help the country recover. The swap deal, part of a 130 billion-euro ($170 billion) second bailout agreement for Greece, is supposed to help the nation reduce its debt to 120 percent of gross domestic product by 2020.

Greece made new proposals on the structure of a debt-swap agreement with private creditors, while disagreement remains on key issues, a person on the lenders’ negotiating committee said yesterday. Agreement hasn’t been reached on the maturity or coupon of the new bonds, which are crucial in determining the net present value loss the debt holders will face, said the person, who declined to be identified because talks are private.

--With assistance from Christos Ziotis in Athens. Editors: Frank Connelly, Dylan Griffiths

To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net; Rebecca Christie in Brussels at rchristie4@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Edward Evans at eevans3@bloomberg.net


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