The French government and national banks have reached an agreement on a new bailout plan for Greece that would make a proposed debt rollover more attractive for lenders, France's Le Figaro newspaper reported Sunday, according to dpa. Under the French proposal, private lenders would reinvest 70 per cent of loans repaid by Athens when they fall due, with 50 per cent of the amount reinvested going into loans with a term of 30 years, instead of the five previously discussed. The other 20 per cent would be invested in a "zero coupon" fund of high quality stocks that would replenish itself through interest accrued. That fund would act as security for the Greek loans, instead of European governments having to guarantee the loans, as some banks had been demanding. Initial reaction to the proposal at a meeting of European Union leaders on Friday had been "favourable", Le Figaro quoted a source close to the negotiations as saying. -- SPA
