Greek FinMin Says IMF Debt Swap Talks Started

Greece has started negotiations with the International Monetary Fund over a plan to swap its sovereign debt for growth-linked bonds, Finance Minister Yanis Varoufakis said in an interview published on Wednesday.

Greece’s new government is trying to restructure its public debt after receiving 240 billion euros ( $275 billion ) in bailout money since 2010, when the euro zone debt crisis brought its economy close to collapsing.

The government of leftist prime minister Alexis Tsipras , elected last month on an anti-bailout ticket, is proposing to swap Greek bonds held by the European Central Bank and national governments for either growth-linked or perpetual bonds.

The plan got a sceptical reception from euro zone officials on Tuesday as Tsipras sought support for his proposals in Europe .

His finance minister told Italian newspaper La Repubblica the same deal was also being offered to the IMF.

Varoufakis said the debt would be divided up, with the ECB being paid back “entirely and by the deadline”.

via Kitco

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