Negotiations to extend support of the Greek recovery and involve the banking industry in the operation are far from over. The Secretary of Finance in Germany and France (the two most influential countries in the EU) met today in Berlin after admitting that several unknown variables will not be clear until after summer vacation.
The private sector´s contribution is one missing piece to the puzzle. Banks, insurance companies and investment funds will have to reduce European taxpayers, through the budgets of Eurozone countries that are directed at Athens via multi-million dollar bailout loans.
Yesterday members of the International Institute of Finance (IIF) met to analyze the various methods of payment that are up for discussion. According to statements at the end of this powerful banking lobby?s meeting, there were no firm resolutions.
The meeting was one of many meetings that will keep tackling the question.
According to the French formula, the banks would agree to place a sale of recently-emitted Greek debt, 50% of which Athens reimbursed them for so long as they sell the bonds that they currently have. The banks would accept this buyback if they were offered profits between 5.5% and 8%.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
