Charles Dallara, managing director of the Institute of International Finance, said in an interview that he remained “hopeful and quite confident” the two sides could reach a deal that would prevent a full-scale Greek default when a €14.4 billion bond comes due on March 20. Mr Dallara said the IIF’s position tabled with Greek authorities – believed to include a loss of 65-70 per cent on current Greek bonds’ long-term value – was as far as his side was likely to go. “I think it’s clear we are at the limits of a voluntary deal”, Mr Dallara said, recalling that eurozone heads of state had committed to keeping the restructuring voluntary at a high-stakes EU summit in October. “It is clear to me we are at a crossroads.”
While he has been in touch with Lucas Papademos, the Greek prime minister, by phone over the weekend, Mr Dallara declined to say whether he planned another trip to Athens or would come to Brussels for today’s meeting of finance ministers.
“I am hopeful. We made a lot of progress in Athens over the last few days”, Mr Dallara said. Greek officials said that despite Friday’s setback they were still optimistic a voluntary deal could be achieved ahead of a European leaders’ summit on January 30.
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