ECONOMY

Bond swap plan still developing

The Greek government bond rollover plan will succeed in attracting a high degree of private sector involvement (PSI) when investors acquaint themselves with the full range of options available, the head of the Institute of International Finance (IIF), Charles Dallara, said on Tuesday.

?Initial discussions with investors have been encouraging, and we remain optimistic that any obstacles will be overcome and an agreement will be reached so that the program makes progress,? he told a press briefing in Washington.

Greece said last week that it would not go ahead with its bond swap plan if PSI does not reach 90 percent. Estimates put the level to date at 60-70 percent.

Dallara recognized that several challenges lie ahead for an agreement to be reached, ?which are mainly related to political alignments within Europe.? He added that the IIF is currently exchanging information with supervisory authorities and private investors in a number of European countries regarding the various options.

?The process is expected to last a few weeks, and then participation will be especially strong,? he said.