Venizelos: Bond negotiations at "a very good point" - The Best from Greece

Finance Minister Evangelos Venizelos says talks with banks for a 100bn euro debt reduction agreements are at "a very good point" the clearest indication so far that the complex negotiations could be nearing a conclusion.

 

Venizelos' optimistic assessment came hours before he was to resume meetings in Athens with Charles Dallara, head of the IIF global banking lobby negotiating on behalf of private bond holders.

 

Fears that the crucial deal could be scuttled have arisen following reports that hedge funds are on a late buying spree of Greek bonds to lower consensus for an agreement and gamble on massive insurance pay-outs that would be triggered by a Greek default.

 

The debt deal, known as the Private Sector Involvement, is a key part of a second, massive bailout package agreed by the European Union in October and needed by Greece to continue bond payments and curb its huge national debt.

 

"Our discussions with the private sector regarding the PSI scheme have advanced and are now at a very good point. We are ready for a next meeting ... with our friend, Charles Dallara, from IIF," Venizelos told an investment conference near Athens.

 

"I would like to think that with the support of our institutional partners, this scheme will be completed and will confirm the basic parameters and the keystone objective ... for a sustainable public debt in the long run, which will have been reduced by about 100bn euros, or 47 percent of GDP, and will be absolutely sustainable by 2020."

 

He made the remarks at the investment forum in Lagonisi, attended by United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan. (DG)