Forex News – Greek debt talks show progress

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German Finance Minister Wolfgang Schaeuble speaking at the World Economic Forum (WEF) in Davos, Switzerland said today that he does not  expect Greece to default and expects a new rescue package to be crafted in the coming days.

Other euro zone finance officials also voiced their optimism that a deal to avert a disorderly Greek default was imminent and that key building blocks to resolve Europe’s sovereign debt crisis are gradually fitting into place.

“We are very close to a deal, if not today then over the weekend and preferably in January, not February. We are very close,” said European Economic and Monetary Affairs Commissioner Olli Rehn also at the WEF in Davos.

Talks between Greece and its private sector creditors are due to continue on Friday. The two sides are  discussing a deal that would see Greece pay an “average coupon below 4 percent” on newly issued Greek debt, with the negotiations centering around an average yield of around 3.7  to 3.8 percent.