Selective default is not a solution chosen by the government and it is not using it as a starting position in negotiations, a high-ranking government source stressed on Tuesday after the conclusion of a government meeting chaired by Prime Minister George Papandreou.
The meeting was held at the prime minister's offices and attended by key government ministers, including government Vice-President and Finance Minister Evangelos Venizelos. Government sources said that it focused on the progress of complex negotiations underway in the European Union to agree on a sustainable solution for tackling Greek debt.
The Greek side is apparently aiming for a worst-case solution that, at minimum, combines lower interest rates and deferred repayment with protection of the income and savings of Greek citizens. Sources would not discuss what Greece would consider an "optimum" solution.
The same sources stressed that "the necessary alternative technical approaches" had been worked out ahead of the emergency Eurozone summit on Thursday, outlining the costs and benefits of each proposal that might be put forward during the negotiations.
They noted that the Greek government desired a long-term and effective solution to arise at Thursday's summit meeting. Asked whether Papandreou might veto a solution that was less than satisfactory, they stressed that the government was not going to the meeting with a fixed position decided in advance.
"Anyone who goes to negotiations with a predetermined position does not get results. You set off with the aim of finding a solution and not with such a position," they added.
The government will continue to avoid public discussion on the various scenarios and solutions seen in the media, for fear that some comment might prevent a positive outcome, they added.