French President Nicolas Sarkozy on Monday confirmed that the French government and banks had reached an agreement on a new bailout plan for Greece that would make a proposed debt rollover more attractive for lenders. Sarkozy told a press conference in Paris he hoped that the plan, which the French floated at a meeting of European Union leaders last week, would be adopted, according to a report of the German Press Agency "DPA". Under the 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 punted. The remaining 20 per cent would be invested in a "zero coupon" fund of high quality stocks that would replenish itself through interest accrued and which would act as security for the Greek loans.
