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Greeks on PSI: Progress But No Deal Yet

While chief of Institute of International Finance (IIF), Charles Dallara is packing his suitcases to travel to Athens on Jan 11/2012, Greeks are doing some homework ahead of the talks. Thus under the pressure of French president Nicolas Sarkozy and German Chancellor Angela Merkel who threaten not to give Greece the next aid tranche unless the Greek bond swap (PSI) notes remarkable progress in form of a …final deal.  The sign from Athens in the direction of its lenders are promising. Deputy Finance Minister Filippos Sachinidis reaffirmed on Tuesday morning, that Greece wants definitely to reach a deal. 

Talks on a bond swap between Greece and creditor banks have made progress but there is no deal yet, the country΄s deputy finance minister said on Tuesday, reaffirming that Athens wants to reach a voluntary agreement that makes the country΄s debt sustainable.

Greece is under pressure to conclude a deal with its private bondholders to secure continued funding by its international lenders and avert a default in March, when it has to redeem 14.5 billion euros in government bonds, Deputy Finance Minister Filippos Sachinidis told Real FM radio, according to Reuters.

“There are developments in the talks, we are at a satisfactory point. There is no final text”, he said.

“We want a voluntary agreement in which the private sector will participate and which will ensure the sustainability of Greek debt.”

Under the so-called “private sector involvement” (PSI), agreed in October, investors will voluntarily accept a nominal 50 percent discount on their Greek bond holdings in return for a mix of cash and new bonds.

The PSI deal is a pivotal part of a second, 130 billion euro bailout package for Greece agreed by euro zone leaders in October.

“We want the talks to lead to a final deal which will bolster the view that Greece΄s debt will be sustainable,” Sachinidis said. (Capital.gr)

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