Saturday, January 21, 2012

Greece, creditors fail to broker deal

Greek Prime Minister Lucas Papademos (file photo)

Source: Press TV

Greece and private bond holders have failed to reach an agreement over a deal that prevents the country from defaulting but lose investors up to 70 percent of the loans they have given to Athens.

Greece's Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos met with representatives from banks and financial institutions on Friday, but failed to reach an agreement necessary for the country to avoid bankruptcy.

Athens seeks to strike a deal to cut around 100 billion euros from its debt, which would put the affiliated bankers at a 50 percent loss.

The agreement includes swapping voluntary bond redemptions, equaling EUR 14.5 billion (USD 18.5 billion), which are due in late March.

The deal is needed for the country to unlock a bailout package worth approximately 130 billion euros.

Talks have been planned to resume for a fourth day on Saturday.

Greece's debt stands at EUR 340 billion (USD 440 billion), a sum, which equals around EUR 31,000 debt per person in the country of 11 million people.

The country has the highest debt burden in proportion to the size of its economy in the entire 17-nation eurozone.

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