French banks have agreed in principle to subscribe to new issues of Greek sovereign debt to replace maturing bonds – in effect rolling over existing
commitments – on condition that all creditors do the same, according to people with knowledge of the negotiations.
The move, encouraged by Paris, could provide a way forward for involving private creditors in a Greek rescue programme, though it falls short of Germany’s demand for them to agree voluntarily on an extension of bond maturities.
The French proposal coincides with the thinking of the European Central Bank, which has indicated that a roll-over of Greek debt, rather than a “reprofiling” with extended maturities, would be an acceptable way for private creditors to be involved in a new deal.
French banks are among the largest creditors to Greece, and the French government had sounded them out on their willingness to commit to a roll-over.
FT
commitments – on condition that all creditors do the same, according to people with knowledge of the negotiations.
The French proposal coincides with the thinking of the European Central Bank, which has indicated that a roll-over of Greek debt, rather than a “reprofiling” with extended maturities, would be an acceptable way for private creditors to be involved in a new deal.
French banks are among the largest creditors to Greece, and the French government had sounded them out on their willingness to commit to a roll-over.
