Economy

Greek debt talks with banks to be finalised ‘shortly’: EU

PTI Brussels | Updated on November 15, 2017 Published on January 11, 2012

Negotiations between Greece and banks on a debt writedown will be wrapped up shortly, EU Economic affairs chief, Mr Olli Rehn, has said.

“We are about to finalise shortly the negotiations on private sector involvement,” Mr Rehn said at an economic seminar at the European parliament, noting that a deal was a condition for a new bailout from eurozone governments.

Greece and banks have been negotiating a writedown of at least 50 per cent in order to reduce the country’s debt by €100 billion, a precondition for unlocking second rescue programme preliminarily agreed at an EU summit last October.

Eurozone governments offered €130 billion ($169 billion) in direct aid, of which €30 billion will be used to recapitalise Greek banks to cover their losses resulting from the bond write-down.

“We work together with ECB (European Central Bank) and IMF in order to negotiate with the Greek government a second programme that will ensure sustainability of finances,” Mr Rehn said.

Published on January 11, 2012
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