Sunday, January 22, 2012

Greece, banks near a debt swap deal - source

Greece and its private sector creditors are converging towards a debt swap deal that would cause a real loss of 65 to 70 percent for private bondholders, a banking official close to the talks told Reuters on Friday.

"The two sides are converging," the official said after a meeting between IIF chief Charles Dallara, Greek Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos.

"The new bond will likely have a 30-year maturity and a grace period of 10 years. It will have a stepped-up coupon structure which will average out in the area of 4 percent," the official said.

Copyright 2012 Thomson Reuters. Click for restrictions.

Source: http://www.msnbc.msn.com/id/46069978/ns/business-world_business/

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