PSI deal expected next week

Every day that passes is taking Greece closer to a deal for the haircut on its bonds, with signs pointing to an agreement announcement early next week.

Charles Dallara, managing director at the Institute of International Finance, is set to meet with Greek officials in Athens today as negotiations are in the fine-tuning stage, according to bank sources.

The same sources told Kathimerini that talks are just one step away from completion, but the most important aspect is the degree of participation in the private sector involvement plan (PSI+), rendering the adoption of collective action clauses necessary for Athens.

On Wednesday German Chancellor Angela Merkel stated that the main priority of the eurozone for 2012 is to secure the second bailout package for Greece and complete the debt swap program.

Crucially, BlackRock Solutions is on Friday due to deliver its report to the Bank of Greece on the quality of Greek bank loan portfolios, which is expected to weigh heavily on local lenders? provisions.