The Institute of International Finance (IIF) will on Wednesday chair a crucial meeting of international banks and insurers in Paris in order to draft a plan for private Greek-bond holders to do their part in Greece?s bailout effort.
The lobby group will need to discuss with insurers and banks how to get a deal past international credit rating agencies without them classifying it as default.
Reports suggest a new formula will be tabled, based on the French plan for a Greek debt rollover, including more favorable terms for private bondholders so as to secure their much-desired voluntary participation in the plan.
The Financial Times suggested on Tuesday that the new proposal would lower the interest rate and raise the proportion of debt targeted for rollover in the French plan. The interest rate, the FT suggested, would come down to as little as 5.76 percent, rather than the range of 5.5-8.0 percent originally suggested.