Greece close to a deal with the private sector?

While Wednesday, European banking officials suggested that discussions on private sector participation in the rescue Greek were far from brushing the Entente Cordiale, a senior Ministry of Finance in Athens, Greece said Thursday that Greece could succeed "next weekend" Tongs "final financial scheme" allowing to reach an agreement on the deletion of a portion of its debt.

"Negotiations are completely on track. We use the current momentum. By the end of next week, we could have the financial plan for a final agreement with the private sector, and by early February the launch of the formal offer "to be proposed to the banks, told the senior before the international press agencies.

An ad that tries to calm the impatience of the banking lobby IIF based in Washington, which recently declared that "the weather starts to be counted" to complete the restructuring and rescheduling of Greek debt.

Thursday, Charles Dallara, IIF boss met with Greek Prime Minister and Finance Minister in Athens, the common goal being to avoid a default of Greece around the 20th March, when 14.5 billion euros of debt maturing. Worse, an agreement must intervene much earlier, the procedures require six weeks alone.

Recall that the heavily indebted countries currently negotiating with private institutions in order to obtain the cancellation of nearly 100 billion euros of its debt on a total of over 350 billion.

This gigantic negotiation, called PSI (Private Sector Involvement, NDR) is a "capital" by analysts, they felt that an agreement would allow Athens to re-create new room for maneuver in its discussions with its creditors other EU and IMF.

Wednesday, bankers close to the discussions had suggested that governments consider increasing their participation, citing the weakness of the progress of discussions with the private sector.

Monday, German Chancellor Angela Merkel and Nicolas Sarkozy insisted meanwhile that Greek bondholders take their share of the burden, raising the possibility that states do not pay their contributions in the absence of a reaction responsible for them.

According to sources familiar with the matter, hedge funds (hedge funds) Greek debt holders is trying to avoid converting their assets into new securities, which were amputated at a discount. Bankruptcy of Greece could even interested these funds, to the extent that the situation would trigger the payment of insurance they have purchased.

However, they could recover their full implementation without forcing Greece to such a debacle if enough other private contributors agree to cut theirs. Which is unlikely ...

In 2011, banks represented by the IIF have accepted a discount of 50% of the nominal value of their holdings of Greek debt, an operation designed to reduce the debt to gross domestic product (GDP) to 120% by 2020.

But negotiations now stumble on the terms of exchange of shares: coupon, maturity and credit guarantees.

European Commissioner for Economic and Monetary Olli Rehn said recently about his discussions with the private creditors were about to arrive and that an agreement could be reached soon.