Greek PM confident debt swap deal to be clinched in time

Reuters News
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Posted: Jan 16, 2012 3:39 AM
Greek PM confident debt swap deal to be clinched in time

ATHENS (Reuters) - Greek Prime Minister Lucas Papademos said on Monday he was confident a deal on a crucial debt swap plan would be reached in time despite the breakdown of high level talks last week.

Talks between Greece and its creditor banks to slash the country's towering debt pile ended without an agreement on Friday, pushing Athens closer to default.

"There is a little pause in these discussions. But I am confident that they will continue and we will reach an agreement that is mutually acceptable in time," Papademos said according to a transcript of an interview with CNBC.

Pressure is mounting on Athens to complete a deal with private bondholders to cut its debt to more sustainable levels and convince its international lenders to keep giving it the cash it needs. Without aid, Athens would default in late March when it has to redeem 14.5 billion in bonds.

(Reporting by Angeliki Koutantou and Karolina Tagaris)