The IIF, acting on behalf of the private holders of Greek sovereign paper says it is close to a deal to exchange current bonds for bonds with face value of less than 50% of present. These investors have insisted on a yield of over 4% on this paper. EU officials have said it must be closer to 3% if public parties are to participate.
The brinksmanship has cause the parties to go back and forth for weeks, with a default of Greece on the line.
The IIF announced regarding its negotiators:
Mr. Charles Dallara and Mr. Jean Lemierre, Steering Committee Co-Chairmen of the Private Creditor-Investor Committee for Greece, stated: “We continued discussions today with Greek Prime Minister Lucas Papademos and Deputy Prime Minister and Finance Minister Evangelos Venizelos over the elements of a voluntary debt exchange. Further progress was made, building on the understandings reached yesterday on the key legal and technical issues. We are close to the finalization of a voluntary PSI within the framework expressed publicly earlier this week by Luxembourg Prime Minister Jean-Claude Juncker in his capacity as Chairman of the Eurogroup. We expect to conclude next week as discussions on other issues move forward.”
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