GREECE:INTERNATIONAL FINANCIERS and EU officials failed to make progress yesterday in securing a private-sector contribution to a second bailout of Greece, as bond yields continued to climb because of concern about the scheme.
The managing director of the Institute of International Finance, a group representing about 400 banks and financial organisations, met representatives from the European Central Bank, the Greek government and the euro zone in Rome to try to break a deadlock over how private creditors might voluntarily maintain their exposure to Greek sovereign debt.
It was the latest in a series of meetings among the parties in recent weeks, but there is little sign of a deal coming together. The meeting broke up after about four hours with no conclusion.
To avoid a debt default by Greece, euro-zone finance ministers are trying to put together a second international bailout by mid-September.
A private-sector debt rollover, in which investors would buy new Greek bonds as existing ones matured, is an important part of the new rescue plan.
A source at the Italian treasury said the meeting discussed ideas beyond a complex French proposal to roll over up to 70 per cent of maturing Greek debt, but there was no clarity on what the other options on the table were.
In a reflection of how expectations for a breakthrough in the talks have declined, one banking source commented ahead of the meeting: “The circus moves to Rome.”
Dutch finance minister Jan Kees de Jager told a Dutch newspaper yesterday that the private sector’s involvement in any new Greek bailout had to be substantial. If that meant putting pressure on investors to take part, then so be it, he said. – (Reuters)
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)