Banks Discuss Buying Back Greek Debt

Reuters reports:

International banks, under pressure from European governments to help with another Greek bailout, discussed buying back the country's bonds in another attempt to stitch together a rescue plan after a French initiative failed.

European Central Bank and Greek government officials as well as international and Italian banking executives met lobby group the Institute of International Finance (IIF) in Rome on Thursday, an Italian Treasury source said. Another source close to the discussions said Deutsche Bank took part.

The banks are struggling to strike a deal which would let private sector creditors provide cash and breathing space to Greek debtors without being defined as a default by credit ratings agencies -- which have warned they are watching closely.

The IIF said the group had discussed "debt buy-back approaches," but did not elaborate.