GREECE: Prime Minister Lucas Papademos meets with bondholder representatives for a second day as Greece struggles to work out a deal to write down the country's debt

Record ID: 858711

  • Title: GREECE: Prime Minister Lucas Papademos meets with bondholder representatives for a second day as Greece struggles to work out a deal to write down the country's debt
  • Date: 20th January 2012
  • Summary: ATHENS, GREECE (JANUARY 19 2012) (REUTERS) (*** FLASH PHOTOGRAPHY ***) JOURNALISTS AND CAMERAS WAITING OUTSIDE PRIME MINISTERS OFFICE GREEK FINANCE MINISTER EVANGELOS VENIZELOS WALKING UP STEPS OF PRIME MINISTERS OFFICE VEHICLE OF INTERNATIONAL INSTITUTE OF FINANCE (IIF) DIRECTOR CHARLES DALLARA AND COLLEAGUE JEAN LEMIERRE, THE MAIN BANK NEGOTIATORS OF DEBT SWAP DEAL, ARRIVING AT PRIME MINISTERS OFFICE DALLARA AND LEMIERRE WALKING UP THE STEPS INTO THE OFFICE
  • Embargoed: 4th February 2012 12:00
  • Keywords:
  • Location: Greece
  • City:
  • Country: Greece
  • Topics: International Relations,Economic News
  • Reuters ID: LVADVPV0RD5VFTMQ1VCGT0DPVFZS
  • Aspect Ratio:
  • Story Text: Greek Prime Minister Lucas Papademos resumed talks on Thursday (January 19, 2012) with bank negotiators to try and iron out a crucial bond swap deal required for Greece to receive its next rescue loan and avoid a messy default.
    Before the talks, Papademos called the leaders of the three parties of his coalition government to his office for a meeting to ensure unity as Greece carries out the critical negotiations both for the bond talks but also with the troika expected in Athens on Friday (January 20).
    "We had discussions on a wide range of issues that concern recent developments, particularly negotiations with the troika and the procedure for the PSI. The discussions were held under a positive climate. The leaders confirmed their complete support to the government and to the completion of its tasks," said Papademos.
    Papademos is meeting with officials from the International Institute of Finance (IIF), the main representatives of bondholders.
    Sources close to the talks told Reuters on Thursday the two sides were struggling to bridge the gap and find a deal, but remain bogged down over the coupon, or interest payment, that Greece must offer on its new bonds under the swap.
    Greece must thrash out a deal within days to pave the way for a new loan that allows it to avoid bankruptcy when 14.5 billion euros ($18.5 billion) of bond redemptions fall due in March.
    Greece's official lenders -- the European Union and the International Monetary Fund -- say the work must be cleared before funds are doled out from a new 130 billion euro rescue plan. EU and IMF officials - referred to as the "troika" are due to begin meetings with the Greek government on Friday to discuss reforms and plans to finalize that loan package.
    Turning up the pressure ahead of Thursday's talks, Finance Minister Evangelos Venizelos told lawmakers that a large chunk of the bond swap must be agreed by noon on Friday and formalised before Monday's meeting of euro zone finance ministers.
    Kept afloat by bailout loans, Greece faces the threat of having to leave the euro zone and slumping into further economic and social misery if it fails to come to grips with its debt, including securing a deal with the private bond holders.
    END
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register