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GreekReporter.comGreek NewsEconomyCharles Dallara: Time Running Out For Greek Debt Deal

Charles Dallara: Time Running Out For Greek Debt Deal

Time is running out to finalize a prescribed agreement that sees private creditors taking a 50% loss on their Greek sovereign debt holdings to help ease the ailing country’s fiscal burden, the bondholders’ chief representative said Tuesday.
Charles Dallara, managing director of the Institute of International Finance, told reporters at a press conference in Zurich that beyond the initial agreement, the implementation of a complex deal involving multiple parties and public-private sector cooperation would eat into the time left before Greece must make a EUR14 billion bond payment on March 20.
At stake, he said, is not only the “social future” of Greece but also “European stability.”
Talks between the creditors and the Greek government stalled last week, leaving on hold a pledge of fresh bailout funds from the European Union and the International Monetary Fund. That money is crucial if Greece is to avoid a default.
The chief of the IIF, a Washington-based global association of large international banks, also declined to forecast a timeframe for reaching an agreement. However, he said he remained optimistic that a voluntary agreement would be reached that still manages to achieve “large-scale participation” among private creditors.
“We will hopefully find common ground in the days ahead,” he said.
Asked whether the IIF was concerned about suggestions that Greece might invoke so-called collective action clauses to force a higher participation rate, Dallara mostly ducked the question. He said simply, “our emphasis is on a voluntary deal, and that’s where we are going to concentrate our efforts.”
(source: Dow Jones)

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