Repackaging Greece?s debt was the focus of a meeting of private sector banks and creditors in Paris on Wednesday. Organized by the Institute of International Finance (IFF), the meeting turned into a broad discussion on how private banks can participate in the rescue efforts so that European taxpayers do not have to supply all the funds.
A major issue raised during the Paris round table was figuring out ways that would avoid the country being declared in default. The latter could have a spillover effect on fellow eurozone countries as well as affect the ability of Greek banks to post collateral with the European Central Bank.
?We are looking at a menu of options to help Greece,? IFF Managing Director Charles Dallara told Reuters after the meeting.
Defining the discussion as ?productive,? Dallara noted that among the options being considered are debt buybacks that could provide longer-term sustainable help, as well as a debt rollover plan that would help short-term financial needs.
Speaking to Bloomberg TV, Dallara noted that Greece?s efforts to emerge from its sovereign debt crisis needn?t be derailed by a temporary period of ?selective default.?
Wednesday?s meeting followed a Standard