Banks seeking official creditor status for new bonds?
Private bondholders told Greece that they were willing to consider the country’s proposal on a debt swap scheme as long as new bonds they receive have the same credit status as official loans, a banker involved in the talks said.
“Banks moved towards the sovereign’s proposal on the condition that the new bonds have about the same credit status as official sector loans,» the banker said after a meeting between the two sides in Athens.
Major elements of the plan such as the coupon and discount rate, which determine the cost for banks, have yet to be agreed after the two-day meeting.
“The discussion focused on the structure of the deal and not so much on rates,» the banker said.
[Reuters]
