According to media reports so far, chief negotiator in the Greek debt swap negotiations, Charles Dallara, said in an interview over the weekend that Private holders of Greek debt have made the ‘maximum offer’ on losses they’re willing to bear.
The deal put together by the International Institute of Finance (IIF) was presented to Greek authorities on Friday evening and comprises losses of 65% to 70% on the value of creditors’ Greek debt holdings.
“I think it’s clear we are at the limits of a voluntary deal,” said Dallara.
The IIF managing director said he remained “hopeful and confident” of a deal to prevent a Greek default over a €14.14 billion ($18.3 billion) bond due on March 20.
There were reports that the IIF chief left Athens in a hurry and there is no word on when he will return but it is expected that talks on Greek debt will continue in some form this week.Meanwhile the focus now turns to the European Finance Ministers meeting which will begin in Brussels this Monday.
Finance ministers will discuss the Greek debt swap, new EU budget rules and a financial firewall to protect indebted states.
There is some optimism that the meeting will produce some concrete results and not just be another case of “kicking the can down the road”.