ECONOMY

PSI agreement is weeks away

Banks remain at odds with the Greek government over their participation in the Private Sector Involvement Plus (PSI+) plan, with any deal unlikely to be agreed to within the next few weeks.

Kathimerini understands that the banks are trying to secure guarantees for the new bonds that Greece will issue to replace the old ones in the haircut process, while Athens prefers to pay cash for part of the bonds to be replaced, using the 30 billion euros it will have at its disposal for this purpose.

The head of the Institute of International Finance, Charles Dallara, stated on Wednesday that it will be some weeks before an agreement is reached. He also linked the completion of the process to ?the new three-year program formed by the European Commission, the International Monetary Fund and Greece.? He added, ?It is important that we lighten Greece?s debt and stabilize Europe in general.?

Josef Ackermann, chief executive of Deutsche Bank, stressed that Greece is an exceptional case and that it should not set a precedent.