FinMin Insists Greece Will Complete Debt Plan
ATHENS -- Greek Finance Minister Evangelos Venizelos on Friday said he believes the government will succeed in persuading bond holders to write down their Greek debt, a crucial part of the country's efforts to avoid default.
He said he was basing that view on "positive signs' from the negotiations that began last month with banks and other private investors.
Greece hopes to wrap up the talks by late January, which would pave the way for approval and implementation of the country's second bailout package. The write-down is one of the main features of the EUR130 billion rescue plan.
European leaders recently backed off plans to require private investors to take a loss if other euro zone countries turn to taxpayers for bailouts, saying Greece is an exception.
"Limiting the PSI [private sector involvement] to our case is helping negotiations with international private creditors very much," Venizelos told parliament.
Greece began talks last month with banks and other private creditors on reducing the nominal value of Greek debt by 50% on a voluntary basis, a move that will save the country some EUR5 billion a year in debt servicing costs. The talks resumed in Athens earlier this week.
According to people briefed on the talks, the two sides appear to be moving towards a compromise on the coupon rate of the new bonds, but other details still need to be worked out. Negotiations may continue next week, possibly in Paris, according to Venizelos.
Business website Euro2day.gr reported Friday, without citing sources, that international creditors are pushing for the agreement to include EUR60 billion in Greek bonds held by the European Central Bank.
(Dow Jones)
