Monday, July 11

Banks take aid plan taken to thrash out Greece

By Paul Taylor and Alex Chambers

Meeting contribute LONDON/PARIS (Reuters) - international banks and insurance companies on Wednesday to a plan for the private sector to Greece bailout efforts, fears grow that will derail the proposal taken to thrash out.


The Institute of international finance (IIF)-lobby group said that it will lead the meeting of private sector of creditors.


It must be resolved, such as a business by rating agencies without it is as a default value, be maintained and employ such as accountants.


A lot must still be done and meet Wednesday are not critical, said multiple sources.


"It is a process." The new French Finance Minister said today that it will take weeks, in the summer. It is complex. It overnight can be resolved, ", said one French private sector source in the talks involved."


He said, there was hardly a single "one size fits all solution", but rather several options are given the number of different holders and stakeholders.


"The problem is so complex that we need more time," added a German banking industry source.


French banks, large holders of Greek Government bonds have voluntarily renewing Greek bonds proposed, recorded at maturity. Bondholders would reinvest at least 70 percent of the proceeds of bonds due to the end of 2014 in new 30-year Greek debt.


A new proposal, said the financial times, sweetened more attractive for Greece, will meet on Wednesday, lowering the interest rate and increase the share of debt, specifically would submitted for rollover in the French plan.


The interest rate would come up at less than 5.76% instead of the range of 5.5-8, 0 percent originally proposed, the FT.com report said.


Politicians and Bankers Trust last week expressed, the French proposal would not trigger a standard, but rating agency standard & poor's said on Monday that losses to the holders of debt, most likely make it Greece a "selective default" evaluation would include.


The S & P statement comes from the makers of the EU as "A message to the plan does not, it ditch review", an EU source said.


"The French plan not obvious political reasons will be left because Member States have to give something to their national parliaments", said the source.


The IIF said on Friday that banks supported proposals to support the Greece and were under a small number of options taking into account. Creditors now trying information hammer.


A meeting with some banks was in an informal discussion to resolve problems, people familiar said the matter on Tuesday in Paris held.


There is also concern you that the private sector, the goal of get can of 30 billion euros (42.6 billion$) trigger from the plan, if a device is private sector contribution proposed 2 billion euros.


She made major pension funds, hedge funds and insurance companies as well as the French source said banks, including it.


According to Reuters data, there are 82.6 billion euro of Greek Government bonds until the end of 2014 due.


The European Central Bank and other central banks of the euro area an estimated 25 billion euros of that debt keep left over 58 billion in private hands. But not all creditors participate.


France's new Finance Minister Francois Baroin said he would go to Berlin on Thursday, the second Greek bailout with his German colleague Wolfgang Schauble to discuss.


"The target date at the end of summer (for an agreement) during the month of September," said Baroin.


Clarity about the treatment of France plan always remains to get a key issue dynamics, it said.


How to move too far from market prices on a wide range could lead to an impairment, but too small a step would it too costly for Greece.


The IIF, representing insurance companies and other financial companies and banks, including BNP Paribas, Deutsche Bank, HSBC and Societe Generale, is coordinating international banks to consensus about the participation of the private sector of in a bailout debt-ridden Greece plays an informal role.


Wednesday meeting will be chaired by Charles Dallara, Managing Director of IIF. It is part of a series of meetings that the IIF is coordination, see in tandem with technical discussions since an IIF meeting in Rome a week ago.


(Reporting by Alex Chambers, markets IFR, London;) Paul Taylor in Paris; Additional reporting by Steve Slater in London, Julien Toyer in Brussels, Philipp neck trick in Frankfurt am Main and Jean-Baptiste vey in Paris; (Editing by Hans-Jurgen Peters and David Hulmes)


Copyright 2011 Thomson Reuters.

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