Athens - Xinhua
An agreement on the terms of the Greek debt swap with private sector bondholders could be clinched in February and be finalized in March, said Greek government spokesman Pantelis Kapsis on Thursday. \"I believe there could be a deal struck soon. By February it should be clear which will be the participation rate of private creditors,\" Kapsis said in an interview with a local radio station. He was referring to the ongoing tough negotiations between Greece and banks and investment funds over the Private Sector Involvement (PSI) plan to turn the Greek state debt sustainable. Under the eurozone summit deal on a second bailout loans package for Greece, private sector holders of Greek bonds should accept a 50 percent \"haircut\" in return of new bonds in the context of efforts to avert a Greek default that could destabilize the entire European common currency zone. Amidst delays, as talks on the debt write-down are expected to last until March, the snap general elections initially scheduled for February 19 by the three parties supporting the Greek interim coalition government, should be postponed and be held no earlier than April, added Kapsis. In early November when former Prime Minister George Papandreou stepped down making way for the formation of a unity administration to push through key structural reforms and secure vital further aid by international lenders, all sides agreed to ballots in late February.