Greece’s private creditors plan to meet in Paris tomorrow to discuss a debt-swap deal that’s contingent on the country securing a second aid package from European and international officials, Institute of International Finance spokesman Frank Vogl said.
Greek talks with international creditors in a seven-month effort to wrap up a second bailout will continue today after negotiations overnight failed to clinch an agreement, with the country’s stability hanging in the balance.
Charles Dallara, managing director of the International Institute of Finance, and Jean Lemierre, a senior adviser to the chairman of BNP Paribas SA, will go to Athens this weekend to continue talks on a Greek debt swap, IIF spokesman Frank Vogl said in an e-mail.
Greek debt swap talks between bondholders and government officials broke down last week because of disagreements over the coupon on the new bonds, said Frank Vogl, a spokesman at the Institute of International Finance.
Greece is running out of time to avoid becoming the first euro nation to default after talks with lenders stalled ahead of a March 20 bond payment that will cost 14.5 billion euros ($18 billion) the country doesn’t have.
Bondholders negotiating a debt swap with Greece have made their “maximum” offer, leaving it to the European Union and International Monetary Fund to decide whether to accept the deal, said Charles Dallara, who’s representing private creditors in the talks.
The euro gained for a second day versus the dollar and the yen as the International Monetary Fund proposed raising its lending capacity by as much as $500 billion to protect the global economy amid Europe’s debt turmoil.
Greece and its private creditors are beginning a final push to renegotiate debt as a member of the investor group said they are likely to get cash and securities with a market value of about 32 cents per euro of government bonds.