ECONOMY

Banks meet to discuss plan to help Greece

International banks are meeting in Paris on Tuesday to discuss France?s proposed plan for the private sector to contribute to Greece?s bailout effort, people familiar with the matter said.

The meeting will be overseen by the Institute of International Finance (IIF) lobby group, the sources said. The IIF on Friday said banks supported proposals to aid Greece and were considering a small number of options, and bankers are trying to hammer out details of those options. The IIF could not immediately be reached.

French banks, major holders of Greek sovereign debt, have proposed voluntarily renewing Greek bonds when they fall due, but on different terms, which could trigger a default. The sources said getting clarity on the accounting treatment of France?s plan remains a key issue to getting momentum.

Politicians and bankers had expressed confidence last week that the French proposal would not trigger a default, but ratings agency Standard