Saturday, January 21, 2012

Greece creditors leave Athens without debt deal

Just let Greece default, its over for them. The longer this drags out the worse it is for everyone else.
Chief negotiators for Greece's private creditors left Athens unexpectedly on Saturday without a deal on a debt swap plan that is vital to avert a chaotic default, sources close to the negotiations told Reuters.

A technical team stayed in the Greek capital to work on details and negotiations will continue over the phone but it is unlikely that a deal can be clinched before a crucial meeting Monday of euro zone finance ministers, the sources said.

Following several rounds of talks from Wednesday to Friday, Greece and its private creditors, represented by Institute of International Finance chief Charles Dallara, are converging towards a deal in which private creditors will take a real loss of 65 to 70 percent.

The new bonds would feature 30-year maturity and a progressive interest rate averaging out at 4 percent, a banking official close to the talks told Reuters.

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