ECONOMY

Bankers, insurers to assess debt plan on Wednesday

International banks and insurers will thrash out improvements to a plan for the private sector to contribute to Greece’s bailout effort at a meeting in Paris on Wednesday, in a bid to prevent the proposal coming unstuck.

The Institute of International Finance (IIF) lobby group said it will chair the meeting of private sector creditors and officials.

The IIF on Friday said banks supported proposals to aid Greece and were considering a small number of options. Creditors are now trying to hammer out details.

A meeting involving some banks was held in Paris on Tuesday in an informal discussion to resolve issues, people familiar with the matter said.

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.

Getting clarity on the accounting treatment of France’s plan remains a key issue to getting momentum, sources said.

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