LONDON-Markets were mostly lower yesterday as investors awaited developments from Athens, where the Greek government is in talks with private creditors on a debt relief deal that could determine whether Europe's financial crisis flares up again. While meeting with debt inspectors from the European Union, the European Central Bank and the International Monetary Fund, the Greek government is also holding a third day of talks with creditors over a deal to get them to reduce the value of their Greek bond holdings. The country wants creditors to agree a €100 billion (US$129 billion) writedown. "The atmosphere of the talks is good, they are continuing today and we hope they will be concluded very soon," government spokesman Pantelis Kapsis told private Radio 9. "This is very important for the sustainability of the national debt and our ability to handle the debt."
Heads of the inspection team are meeting with senior government officials ahead of the next round of discussions with the creditors, due to begin 7.30 pm local time (1730 GMT). An agreement is necessary if Greece is to get the next batch of bailout cash that would prevent a devastating debt default -Greece does not have enough money to cover a €14.5 billion bond repayment in March. Last October, Greece's partners in the eurozone sanctioned a deal whereby private creditors would take a cut in the value of their bond holdings to help lighten the country's debt burden.
AP