Key talks between Athens and its private creditors are set to resume later to try to agree a debt write-off that would dramatically reduce Greece’s debt levels.
The two parties have so far failed to agree an interest rate on new bonds that would replace existing debts but ff agreement can be reached then Greece should be in line for additional bailout funds.
Athens has said it hopes to reach a deal by the end of this week.
Charles Dallara, head of the Institute of International Finance (IIF), which is representing Greece’s private creditors in negotiations with Athens, is set to resume talks on Thursday afternoon after spending Wednesday in Paris to discuss the negotiating position with creditors.
The IIF has indisctaed that it wants interest rates on newly-issued bonds to be set at 4%, while Greece is holding out for a lower rate. Eurozone ministers have backed Athens and called for a rate of less than 3.5%.
Mr Dallara has indicated he is prepared for creditors to write-off 50% of their loans to Greece, as agreed by Eurozone leaders in October last year.
The head of the International Monetary Fund (IMF) has also suggested that public sector creditors should write off some of their debts.
“If the level of Greek debt recovery held by the private sector is not sufficiently renegotiated, then public sector holders of Greek debt should also participate in the efforts,” Christine Lagarde said on Wednesday.
Tags: Athens, greece, greek debt, private creditors
