Creditors of Greece leave Athens without agreement and the continuation of the talks by phone

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Officials source said that the talks between Greece and the Steering Committee of the donors on special exchange agreement debt resumed yesterday by telephone after the sudden departure of senior officials of the country yesterday.

A source close to the negotiations told Reuters: The heads of delegations and their private creditors of Greece had left Athens yesterday without reaching agreement on a plan to swap debt that are essential to avoid the inability to pay. The sources said that a technical team remained in the Greek capital for the preparation of the details and will continue negotiations over the phone, but is unlikely to reach an agreement before an important meeting on Monday of finance ministers of the euro area.

The Greek officials expect to hold Charles Dallara director of the Institute of International Finance, which negotiates on behalf of the creditors’ meeting yesterday, but left earlier in the day heading to Paris.

He denied the Institute of International Finance to be Dallara and his advisor Jean Emeir left suddenly and said: They both have personal connections.

Sources close to the negotiations: that after several rounds of talks held from Wednesday to Friday, moving Greece, and their private creditors to reach an agreement in which creditors will be subjected to losses of between 65 and 70%.

Legal aspects

The sources said that many of the details have not yet been resolved, including the legal aspects of the agreement.

A source close to the talks: “The discussions will continue over the phone but it is not possible to reach an agreement before next week, it was possible to reach an agreement.” He added: “Things are complex and closer to agreement on the numbers but there is still a lot of work ahead of us..” Will become a great deal of attention now to the meeting of eurozone finance ministers in Brussels to look at Germany’s largest provider of loans in the European Union and the International Monetary Fund to the progress made in Mhathat debt swap.

Member States want in the European Union and the International Monetary Fund, particularly in Germany to make sure that the agreement will restore the financial situation of Greece to a sustainable path before you agree on a new rescue plan will cost 130 billion euros are essential to avoid the chaotic inability to pay. The magnitude of the funds they need to Athens from the major lenders on the details of the debt exchange agreement.

Dissatisfaction

According to reports released by private radio station Sky, the donors are the International Monetary Fund and the European Commission and European Central Bank expressed their dissatisfaction with the initial agreement between the Greek government and the donor community, where you think it will weigh a large debt of Greece.

Greece is heavily indebted to reach a final version of the deal by Monday to be able to get the second rescue package from the European Union and the International Monetary Fund to solve before the maturity date of bonds worth 14.5 billion euros on 20 March.

He said the European Union and the International Monetary Fund: The Athens will get a new aid package only if the shareholders agreed to write off 50% of the value of Greek debt with funds in exchange for new bonds and longer maturity periods.

According to the International Monetary Fund and the Greek government: that the talks are progressing, but any agreement must be approved by Brussels, Berlin and the International Monetary Fund.

Differences of interest

Parties could not reach an agreement on the interest rate on new bonds to be issued by Greece, where shareholders demand to 4.25% while the insisted Greece and the euro area and the Fund to 3%. Athens is trying to reduce its debt amounting to $ 350 billion euros, 100 billion euros by asking donors write off its bonds. The agreement to allow Greece to obtain a second rescue package worth 130 billion euros. This comes in addition to the first rescue package was received by Greece in 2010 and valued at 110 billion euros.