Greek PM guardedly optimistic of PSI deal by end-week

Prime Minister Lucas Papademos on Tuesday night expressed guarded optimism that a deal will be reached by the end of the week in ongoing negotiations with Greek bondholders for a writedown of Greek debt.

Speaking to the press following a reception for the diplomatic corps at the Maximos Mansion, Papademos said «we will have a positive outcome by the end of the week,» adding that Thursday’s scheduled trip to Athens by managing director of the Institute of International Finance (IIF)Charles Dallara, «will be his last visit.”

Papademos also met late on Tuesday with Finance Minister Evangelos Venizelos who returned from Brussels, where a meeting of European finance ministers pushed for a compromise to be found with private holders of Greek debt, after talks stalled on demands by the official sector for a coupon of no more than 3.5 percent on the new bonds to complete the debt swap, while private bondholders have insisted on at least 4 percent.

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