Hopes rise for Greek deal as US praises euro salvage bid

Page last updated at 04:38 GMT, Friday, January 27, 2012 - 09:38 EST

AFP:

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Europe's economic pointman said Friday he expected Greece to agree a deal with private creditors to write down its debt this weekend as the US praised efforts to combat the eurozone crisis.

Speaking at the Davos forum, EU economic affairs commissioner Olli Rehn said the Greek debt agreement may be hammered out before a gathering of European Union leaders Monday, in what would be a major shot in the arm to the summit.

"We're very close," he told the World Economic Forum in Davos. "They're about to close a deal, if not today maybe over the weekend, preferably in January rather than February."

As he spoke in Switzerland, the Greek government in Athens was in talks with private creditors on a voluntary exchange of bonds that would wipe 100 billion euros ($130 billion) off the country's debt of 350 billion euros.

Read the whole story: AFP