Arab Today, arab today greece creditors gear up for next round of debt talks
Last Updated : GMT 16:24:29
Arab Today, arab today
Arab Today, arab today

Greece, creditors gear up for next round of debt talks

Arab Today, arab today

Arab Today, arab today Greece, creditors gear up for next round of debt talks

Athens - AFP

Greece and its private creditors will try again this week to settle differences in a high stakes standoff on cutting the nation\'s massive debt and preventing a default that would rock the eurozone. Athens and bank representatives are to explore on Wednesday and Thursday ways of cutting 100 billion euros ($128 billion) in debt from a total of more than 350 billion euros that is crushing the country. The talks broke off late last week, reportedly after an intervention by the International Monetary Fund and Germany, a key eurozone creditor, which reportedly sought to lighten the burden on Greece. \"We have reason to believe that we will reach an agreement soon,\" a Greek finance ministry source said Tuesday. The Institute of International Finance that is leading the negotiations on behalf of private banks and other financial institutions that own Greek debt said Tuesday they remain committed to reaching a deal. Private investors \"reiterated their commitment to seeking an agreement on a voluntary debt exchange for Greece and encouraged all parties to work in good faith toward this end with a sense of urgency,\" an IIF statement said. Athens is threatened by an historic debt default in March but the government of Prime Minister Lucas Papademos has vowed to hammer out a deal before then, and downplayed the consequences of the stalled talks on Friday. The finance ministry source did not rule out that a resumption in the negotiations would have to wait until Thursday however, given \"the arrival expected in Athens late Wednesday by Charles Dallara, head of the IIF.\" In October private investors agreed to pursue talks on a deal that would see them foregoing 50 percent of the money owed to them, along with an exchange of the remaining debt for bonds with a maturity of 20-30 years. On Friday, discussions got hung up over the amount of the new bond\'s coupon, or rate of interest, that Athens would pay private creditors. A source close to the talks told AFP a rate of five percent had almost been agreed to before the two sides were taken by surprise by observers attending the sessions. On one hand, representatives for hedge funds protested that the rate was too low, which prompted the IMF and Germany to suggest an even weaker level of three percent. With even large institutional banks up in arms over that proposal, a rupture quickly ensued, the source said. \"The banks did not have enough control over the hedge funds, but things should calm down,\" the source said. \"We will find a rate that works for everyone, probably somewhere between four and five percent, perhaps a little less, and variable over time,\" it added. Greek media said that Germany and the IMF sought above all to ease the burden on Greece. The finance ministry source added that \"everyone has an interest in this working, Europe, (German Chancellor Angela) Merkel, (French President Nicolas) Sarkozy, (Italian Prime Minister Mario) Monti and the banks.\" Following the sovereign debt ratings downgrade of nine eurozone countries by Standard and Poor\'s on Friday, \"they have an overriding interest in signing something that shows the eurozone is restoring financial discipline,\" the second source added. That would reassure markets the eurozone is able to resolve its own problems. Meanwhile, Athens is also holding talks with public creditors led by the IMF and European Union officials to release loans worth 130 billion euros in a second round of financial aid on top of 110 billion euros already pledged in May 2010. In Athens on Tuesday, normal activity was at slow-motion amid strikes and demonstrations against proposed reforms, while the heads of a mission that includes the IMF, European Commission and European Central Bank were expected on Friday.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today greece creditors gear up for next round of debt talks Arab Today, arab today greece creditors gear up for next round of debt talks

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today greece creditors gear up for next round of debt talks Arab Today, arab today greece creditors gear up for next round of debt talks

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 10:39 2017 Monday ,26 June

Authorities release Assala under conditions

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday