ECONOMY

Hedge fund walks out on Greek debt swap talks

Vega Asset Management has resigned from a group of private creditors leading talks with Greece and its international lenders over a restructuring of its debt, two sources said, amid differences over how to proceed with the voluntary bond swap.

The Madrid-based fund was on the steering committee, set up last month to negotiate with Greece over the terms of a voluntary restructuring of Greek government bonds held in private hands.

The Steering Committee, led by Co-Chairmen Charles Dallara, managing director of the Institute of International Finance, and Jean Lemierre, senior adviser to BNP Paribas, was set up to push forward talks on the voluntary bond exchange.

Vega was the sole fund representative on the steering committee and members still include Alpha Eurobank, AXA, BNP Paribas, CNP Assurances, Commerzbank, Deutsche Bank, ING, Intesa San Paolo, LBBW and National Bank of Greece.

Vega declined to comment. [Reuters]