Ahead of Monday Meeting in Rome, Banks Suggest Rolling Over Some Bonds
Efforts to get private investors to provide help to a new bailout for Greece intensified, as French banks proposed a plan to reinvest half the proceeds from maturing Greek government bonds and key players prepared for a meeting in Rome on Monday aimed at discouraging bondholders from rushing for the exits..........Since that agreement, behind-the-scenes talks about how to achieve this have intensified, involving the Institute of International Finance, a Washington-based group comprising more than 400 banks and financial institutions worldwide. Its managing director, Charles Dallara, will be at the meeting Monday, according to a spokesman for the IIF.....
....Expected to attend the meeting, hosted by Italy's largest bank, Intesa Sanpaolo SpA, in Rome, are representatives from banks, insurance companies, and officials from the Greek and other European governments, as well as from the European Union and the European Central Bank.
The French proposal calls for half of the proceeds from maturing Greek bonds to be reinvested in new 30-year Greek bonds. A further fifth of the proceeds would be invested in high-quality bonds—presumably, for French banks, these would be French Treasury bonds—as insurance to guarantee repayment after 30 years.
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http://online.wsj.com/article/SB10001424052702304314404576409834040545922.html
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