January 15, 2012 · 0 Comments
weather.info/home/index.cfm?city=Athens,%20Greece&latlon=37.97945,23.71622&u=c”>Athens - Two days of talks in weather.info/home/index.cfm?city=Athens,%20Greece&latlon=37.97945,23.71622&u=c”>Athens, broke up Friday without an agreement and the IIF declared that the negotiations were on hold to allow for a time of “reflection.The debt write-down is part and parcel of a fresh EUR130 billion bailout Europe and the IMF have promised Greece to cover its financing needs through 20 But the amount of public sector support for Greece will depend on how much the private sector writes off of Greece’s EUR360 billion debt.
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The IIF is seeking an annual coupon of 4% to 5%, arguing that is the absolute lower limit of any deal that could be described as voluntary, according to people with direct knowledge of the talks.Some euro-zone governments, led by Germany and supported by the International Monetary Fund, have been pushing for an interest rate of well below 4%, these people said.On March 20, Greece faces a EUR5 billion bond redemption that it cannot meet unless it receives the new loan from its European partners and the IMF.
In his remarks to Socialist deputies, Venizelos said the goal for the two sides is to reach a preliminary deal by next Monday’s euro-group meeting, and the outlines of a deal on the broader loan package before the European summit on Jan.Under such a timeline, Greece would then proceed with a formal debt offer during the week of Feb.Our counterparts from the Institute for International Finance will return on Wednesday and our goal is to have a general outline agreed before the next euro-group meeting on Jan.
The main dispute between the two sides on Friday related to the annual interest payments on new bonds that would be exchanged for old ones.
The IIF, a weather.info/home/index.cfm?city=Washington,%20DC,%20United%20States&latlon=38.89511,-77.03637&u=c”>Washington-based lobby group representing the world’s biggest banks, agreed in October that it would negotiate a “voluntary” debt write-down deal with Greece aimed at a 50% cut in the face value of bonds held by the private sector.
Greece will resume talks with its private-sector creditors next week on a massive debt restructuring plan, with an aim to reach the outlines of a deal in time for a Feb.6-10, Venizelos said, with the final debt exchange expected to be completed by the end of February.23,” Venizelos said in a speech to Socialist party deputies late Saturday.23 meeting of euro-zone finance ministers.
The clock is ticking for Greece, as a deal must be reached before March Photo: EPA In remarks to fellow socialist party members, Evangelos Venizelos insisted the talks will resume in the coming days despite breaking down Friday amid disagreements over the future interest rate Greece will pay.The goal is to slice EUR100 billion off that total–which would save Greece some EUR4 billion in annual interest payments–but presumes 100% voluntary participation in the debt restructuring, something that looks increasingly unlikely and may bring about an involuntary write-down.
By Emma Brown