By the beginning of February we may have the formal public offer,” the unidentified official told journalists. The IIF, which represents the majority of private holders of Greek debt, issued a statement on Thursday, saying: “A range of issues were discussed and some key areas remain unresolved. Discussions will continue in Athens [on Friday], but time for reaching an agreement is running short.” Venizelos expressed reserved optimism, saying the talks are “at a very good point,” after suggesting on Wednesday evening that he would have been happier if the issue of reducing public debt had been dealt with from spring 2010.
With the maturity period and the interest rate of the new bonds still being negotiated and the rate of participation by private bondholders still uncertain, the outcome of the talks remains unknown. Dallara is said to have asked for a coupon of more than 5 percent. Observers have not ruled out the possibility of forced participation that would trigger the payout of credit default swaps.
Deputy Finance Minister Filippos Sachinidis stated yesterday that if there is not full participation by private creditors, Greece would need additional international funding. “If the participation level is below 100 percent, it is possible that additional support from our partners will be needed to cover the funding gaps,” he told Skai Radio on Thursday.