EU Governments Have ‘Menu of Options’ From Banks, Perol Says
By Fabio Benedetti-Valentini - Jul 19, 2011 4:58 PM GMT+0200 Tue Jul 19 14:58:03 GMT 2011
European Union authorities gathering on July 21 to discuss a second rescue for
Greece have a “menu of options” from the International Institute of Finance providing tools to involve private investors, said Francois Perol, head of the French Banking Federation.
“
All possible and imaginable technical tools are on the table,” Perol said at a meeting with reporters in Paris today. “Some might be interested by forms of buyback, others by renewal formulas,” he said, declining to give further details.
The set of proposals from the Washington-based IIF, backed by the French banks’ industry group, is “broader” than a plan put forward by French lenders, Perol said. French banks proposed a plan last month to roll over 70 percent of bonds maturing by mid-2014 into new 30-year Greek securities backed by AAA-rated collateral.
“
All French banks will be involved if there’s an involvement of the private sector, on a voluntary basis,” Perol said, declining to say what option the French banks prefer or how the original plan has been changed.
Officials from the
European Central Bank, the European Commission and the banks renewed their talks in
Rome on July 15 on involving private investors in a second rescue plan for Greece. The Rome discussions were organized by the IIF, a trade association representing more than 400 banks and insurers, and chaired by
Vittorio Grilli, the head of the EU’s Economic and Financial Committee.