Deutsche Bank head brands PSI generous

Private sector creditors are very generous in that they take a 70 percent cut to the net present value of the Greek bonds they hold, said the chairman of the Institute of International Finance, Josef Ackermann, before his arrival in Athens on Saturday.

The Swiss banker, who is also the outgoing chief executive of Deutsche Bank, stated that ?the private sector is excessively generous by offering now a loss of over 70 percent,? and went on to ask others to do the same, without specifying who he was referring to.

?We are in a situation where we either construct something or demolish something,? Ackermann said in Munich, stressing that Greece?s role is very significant.

He flew to Greece as talks about the haircut to the bonds that the private sector holds (PSI) were close to fruition. ?We will be on the right track if we do reach a solution in the coming days,? he stated.

The managing director of the IIF, Charles Dallara, who leads negotiations with Athens for the private sector, had a meeting with Prime Minister Lucas Papademos on Saturday afternoon.