Banks organize meetings to thrash out aid plan for Greece (Reuters)

London (Reuters)-international banks and insurers will thrash improvements to a plan for the private sector to contribute to the effort to rescue of Greece at a meeting in Paris on Wednesday, in an attempt to prevent the proposal coming unstuck.

The lobbying group of the Institute of international finance (IIF) said he will chair the meeting of creditors of the private sector and Government officials.

IIF said banks on Friday proposed support to help Greece and were considering a small number of options. The creditors are now trying to hammer out details.

A meeting involving some banks was held in Paris on Tuesday in an informal discussion to resolve problems, people familiar with the matter said.

French banks, the main Greek sovereign debt holders, have suggested that Greek bonds when voluntarily renew at maturity, but in different terms, that might trigger a default value.

Get clarity on the accounting treatment of the plan of France remains a key issue to get momentum, said sources.

Politicians and bankers had expressed confidence last week that the French proposal would trigger a default, but the Agency's evaluation Standard & Poor said Monday that it would involve loss of debt holders, most likely Greece to earn a rating of "selective default".

Under the plan of the bondholders would reinvest at least France the 70 percent of the proceeds of bonds maturing in 2014 on new Greek debt of 30 years.

The IIF, representing insurers and other financial firms and banks BNP Paribas, Deutsche Bank, HSBC and Societe Generale banks, is playing a role of informal international coordination to reach a consensus on private sector involvement in a bailout of debt-ridden Greece.

Wednesday's meeting will be chaired by Charles Dallara, Managing Director of IIF. Is one of a series of meetings that the IIF is coordinating, running in tandem with technical discussions since a meeting IIF in Rome a week ago.

(Reporting by Alex Chambers, IFR markets; Further notification from Steve Slater in London and Jean-Baptiste Vey in Paris; Editing by Hans-Juergen Peters and David Hulmes)

View the original article here

Posted in: Banks,business,Greece,meetings,organize,Reuters,thrash