Game of “poker” between Athens & bankers for bond exchange

Crucial meeting in Brussels

 

After the destructive Reuters scenarios of last week regarding the certain failure of the PSI plus, new negotiation manoeuvres seem to have ensued between the Greek public sector and the banks in order to push the exchange bond plan.

At a very unclear and difficult moment for the future of the Eurozone, just like the IIF, the Greek government is beginning negotiations with the banks.

Investors and French banks feel asphyxiated by the general overwhelming picture and although they can stand Greece’s haircut, they do not wish to see the same thing happening with the Italian bonds, too.

On Tuesday, yet another round of negotiations kicks off between representatives of the Greek Public Debt Management Agency and those from the National Bank, Alpha Bank and Eurobank from Greece.

Charles Dallara will be heading the talks and there will also be a steering committee with representatives from ten banks. ΒΝΡ Paribas, Deutsche Bank & Commerzbank, ΑΧΑ, Intesa San Paolo, LBBW, Vega, CNP Ansurances, Greylock Capital Managment and Marathon Asset Management are among the banks represented at the meeting.

Sources say that banks insist the new bonds have and 8% interest instead of the 6% that the Greek side is willing to offer.

If also the second RSI fails, then we might be headed towards a third, equal to complete and uncontrolled bankruptcy.

“In case of failure, the future is murky. Most probably, the viability of the debt will be put on the table anew”, says a governmental official who is able to check things from a closer distance.