Greece is on the verge of a breakthrough in talks with its creditors that could wipe out up to 70 per cent of its debts and alleviate the crisis in the euro zone, the Guardian reports.
A draft deal has the backing of Brussels after three days of difficult talks. As part of the deal, Greece would pay an interest rate of 3.1 per cent on new 30-year bonds created from its outstanding debt of €360-billion. The rate would eventually rise to 4.75 per cent. Creditors will have to accept writedowns of up to 70 per cent on many of their loans, the British media organization said.
Final details still must be worked out, but the Guardian said Greek officials told it that further talks over the weekend would bring a “comprehensive deal.”
If the report is true, the news has yet to influence North American stocks. Major European exchanges all closed down moderately.