January 12, 2012
Private holders of Greek bonds warned that time was running out to conclude a deal on banks and other investors voluntarily accepting losses as they tried to put pressure on eurozone governments.
After a meeting between the Greek government and leading representatives of the world’s top financial institutions in Athens, the co-heads of the investor committee negotiating with Greece said “some key areas remain unresolved”.
They called for support from “all official parties” to be given to the deal in the coming days, reflecting frustration from some bondholders at what they see as a hardline stance taken by the International Monetary Fund and others. “Discussions will continue in Athens [on Friday] but time for reaching an agreement is running short,” the investor group said.
Tensions have started to grow among creditors, who include most of the leading European financial institutions such as Allianz, Axa, BNP Paribas, Deutsche Bank and HSBC.