Heated consultations concerning the plans for private investors’ participation in the new salvation package for Greece. Pressures for reexamination of the German plan

Heated consultations and teleconferences will take place during the weekend among stakeholders involved in the process of drawing up the plans concerning the private investors’ participation in the new funding mechanism for Greece.

In view of the Eurogroup meeting on 11 July, where the proposals for the participation of private investors in the Greek affair will be examined, officials from national and international administrations finalize the last versions of plans examined throughout the week in the international meetings of the Institute of International Finance (IIF) and the European Commission in Paris and Rome respectively.

There has been a dynamic comeback in the negotiation table of the German proposal to exchange Greek bonds hold by the banks with new bonds of longer duration. “The idea of exchanging Greek bonds was one of the options discussed in Rome”, stated source with knowledge of the discussions, in Reuters, revealing that “officials are working continuously on different options”.

At the same time, the proposal of the Institute of International Finance for re-buying part of the Greek debt through the secondary bond’s market is being under examination. This could either happen through the European Financial Stability Fund (EFSF), either with a new loan provided to Greece by IMF and the Eurozone, either with part of the money that the public sector will derive from the transfer of bonds, in the case the French plan is materialized.

In.gr, 8 July, 2011, Πυρετώδεις διαβουλεύσεις για τα σχέδια συμμετοχής των ιδιωτών στο νέο πακέτο διάσωσης της Ελλάδας
translated from Greek by Anastasia Koutri