PARIS — The biggest banks in the eurozone are discussing ways to contribute to any new financial rescue package for Greece, which is supposed to be sealed by September.
Senior executives from top European lenders are meeting in Paris Wednesday at the headquarters of French banking giant BNP Paribas, according to a person familiar with the talks. The person was not authorized to be publicly named because the talks, under the auspices of the Institute of International Finance, are private.
Their main task is to come up with terms under which they would be prepared to buy up new Greek bonds, currently seen as one of the riskiest investments in the world. Finance ministers have indicated they want all the pieces of a second bailout in place by September.
The meeting “is part of a series of meetings of leading private creditors to Greece to support the reform program,” said Frank Vogl, a spokesman for the IIF. He added that similar get-togethers are planned over the coming weeks.
The IIF said in a statement last week that the bankers will discuss a voluntary rollover of Greek bonds, and that the goal is to provide “significant cash-flow support to Greece during 2012-14 on the basis of broad-based voluntary participation by private investors.”
Eurozone governments want “substantial” private-sector contributions to a new rescue deal for Greece, so the whole burden doesn’t fall on taxpayers, many of whom are angry at having to bail out a country long seen as sloppy with its finances.
France’s new Finance Minister Francois Baroin stressed the need for a “shared effort with the private sector” in the new plan.
The European Commission has said that Greece will need an extra C115 billion ($166 billion) through the middle of 2014, on top of the C110 billion ($159 billion) from European governments and the International Monetary Fund granted a year ago — although some of that financing will come from the sale of public assets and the private-sector contribution.