Greece was "seeking a formula" in talks with creditor banks today on details of how they will take their losses on Greek debt, the Greek debt management agency said, but disagreement was in the air.
Creditor banks and Greek officials are negotiating details of a complex overall rescue package brokered by the European Union for banks to accept a loss of about 50% and to help Greece roll over maturing bonds so the country can sustain its huge debt.
Greek daily Kathimerini reported that "no deal" had emerged yesterday after a first round of talks in Athens between officials and Charles Dallara, the managing director of the Institute of International Finance who is leading negotiations on how the banks will take their losses.
"We are seeking a formula, the talks are ongoing... A solution is needed that guarantees the greatest (creditor) participation possible," PDMA chief Petros Christodoulou told AFP by telephone from London where he was briefing investors.
"Each investor has different needs, French banks may want one thing and other banks another, we need a synthesis," Christodoulou said.
Kathimerini said bondholder talks were to begin at the headquarters of Deutsche Bank in Frankfurt today.
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The IIF has confirmed that Dallara will also be in Frankfurt to meet leaders of financial institutions that hold a significant chunk of Greece's 350-billion-euro ($472 billion) debt.
Dallara late yesterday met new Greek Prime Minister Lucas Papademos -- the European Central Bank's former vice-president -- and Finance Minister Evangelos Venizelos.
A finance ministry source said the talks with Venizelos had covered the Greek rescue deal agreed by eurozone leaders in an all-night summit last month and "in particular the participation of private creditors".
The daily said Dallara had presented two proposals which did not satisfy the Greeks as they would not bring the country's debt down to 120% of national output by 2020, as agreed under the October eurozone rescue deal.
In Brussels, the banks had agreed to accept a 50% writedown on Greek debt as part of a second European bailout deal, which also gives Athens 100 billion euros in loans and 30 billion to recapitalise its banks.
But the details of the so-called "haircuts" must still be hammered out.