Talks over Greek debt swap accord to continue

ATHENS, Jan. 26 (Xinhua) -- Greek government officials and visiting representatives of private creditors are to continue negotiations over a vital Greek debt swap accord in Athens on Friday, according to sources of both sides.

Greek Prime Minister Lucas Papademos and Greek Finance Minister Evangelos Venizelos wrapped up on Thursday night a meeting with Institute of International Finance (IIF) Managing Director Charles Dallara over "technical and legal aspects" of the deal in the context of international efforts to stave off a bankruptcy that could hit global economy.

In a short announcement after the latest talks, IIF noted that "some progress was achieved," in the dialogue over the Private Sector Involvement (PSI) plan to swipe out part of the Greek sovereign debt.

According to local media, under pressure by European Union (EU) and International Monetary Fund (IMF) which support Greece with rescue loans since 2010, private bondholders proposed a reduced average progressive interest rate of some 3.7 percent for new Greek bonds that will replace the ones they own under certain terms.

An agreement on the PSI is regarded as a prerequisite for the release of further EU/IMF aid to Greece to avert a default this spring.