Greek Prime Minister George Papandreou called for a “definitive solution” to Greece’s debt troubles when euro-area leaders meet in two days to craft a new aid package for the country.
“We want to lessen the burden of the debt, a solution that will re-establish credibility,” Papandreou said yesterday in Brussels. He spoke after euro-area leaders met to rework a planned second aid package for Greece in which bondholders are being asked to accept a deeper writedown on Greek debt.
Greece’s economic slump has forced a revamp of a July 21 accord on a new international rescue that foresaw a 21 percent loss for bondholders. That program was to total 159 billion euros ($220.5 billion), including 50 billion euros from banks through debt swaps and rollovers.
Euro-area leaders are due to meet again on Oct. 26 to continue work on the new bailout for Greece and on ways to bolster the region’s rescue fund. Papandreou said negotiations on new financial relief were “tough” and would continue.
