Banks meet IIF in Rome for talks with Greece: source (Reuters)

Rome (Reuters)-international banks will hold a further round of talks on Thursday, aimed at finding a way to help rescue Greece's debt second after a previous French plan stalled.

Banks meet with lobbying group the Institute of International Finance (IIF) in Rome on Thursday, said a Treasury source.

Meeting of Thursday, follows similar talks, organized by the IIF in Paris on Wednesday in which "a menu of options" has been discussed to engage the private sector creditors on an aid package for Greece, according to Charles Dallara, Managing Director of Bank Hall.

Officials are trying to work out a solution that would allow private sector creditors to take part in a voluntary agreement that would not be defined as a default by rating agencies, but agreement is proving difficult.

A French proposal for a rollover in which bondholders would reinvest at least 70 percent of the proceeds from debentures maturing before the end of 2014 in Greek debt again met 30 years rating agency objections.

Officials are now looking at a wider range of options.

"There is going to be an exchange of views on developments so far and the solutions currently on the table for the involvement of private creditors," the source said.

"Various options will be discussed, not just a solution," added the source.

The meeting will be chaired by Vittorio Grilli, Director General of the Treasury, in his capacity as President of the economic and Financial Committee of the European Union.

There will be officials of the European Central Bank and the Greek Government, as well as Italian and international bank executives, the source said.

One EU source has also confirmed that the meeting will take place in Rome and EU representatives will not be present, however, no representative from any of the agencies should be in the rating.

On Thursday, the Dutch Finance Minister Jan Kees de Jager was quoted by the newspaper Het Financieele Dagblad as saying that banks in the private sector must be threatened to take part in a bailout as a voluntary agreement was unrealistic.

(Reporting by Francesca Landini; editing by Patrick Graham)

View the original article here

Posted in: Banks,business,Greece,Reuters,source,talks