No constructive response in Greek debt talks: IIF (by William L. Watts)
FRANKFURT (MarketWatch) -- Negotiations on restructuring privately-held Greek government debt failed to produce a "constructive consolidated response by all parties" and have been suspended, negotiators representing Greece's private-sector creditors said Friday in a statement. "Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach," said Charles Dallara, president of the Institute for International Finance, a banking lobby group, and Jean Lemierre of BNP Paribas, in a joint statement. The pair offered no date for the resumption of negotiations. European leaders agreed in October on a second bailout for Greece that would see private bondholders share the pain by taking a voluntary 50% haircut on the value of Greek bond holdings.