Little progress yet on PSI plan

Negotiations that began on Monday between the government and representatives of private creditors on private sector involvement (PSI) in the Greek debt swap plan failed to conclude with an agreement on Tuesday, according to sources.

Reports suggested that Greece tabled new proposals on the structure of the debt swap, but the two parties are still at loggerheads over key points. The lenders have also made a proposal.

A banker involved in the talks told Reuters that the process would continue in the coming days. ?The Greek state received the proposal of the creditors and will study it. It was not rejected, but the deal could not be agreed today,? he stated yesterday.

Bloomberg cited another source from the bankers? negotiators suggesting that Athens agreed in principle to give private creditors seniority equal to official lenders such as the International Monetary Fund and the European Union, if that is legally permissible.

Estimates suggest that a deal will probably not be reached before February.

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