June 29 (Bloomberg) — John Lipsky, acting chief of the International Monetary Fund, said today there will be some voluntary private-sector involvement in the Greek rescue package.
Eventually there will be on a voluntary basis some degree of contribution by private-sector creditors, Lipsky said in an interview on Bloomberg Televisions In Business with Margaret Brennan. This is all part of a broad package of finance that supports that structural reform process.
European Union leaders, who rejected buybacks earlier this year, have called on private investors to shoulder some of the cost of a new bailout package for Greece, a year after the 110 billion-euro ($159 billion) rescue that failed to stop the spread of the regions debt crisis. Under a plan by the French banking association, investors holding Greek bonds maturing by mid-2014 would be asked to roll over 70 percent of their holdings into new 30-year debt.
Now were working on the details, Lipsky said during the TV interview. The IMF yesterday selected Christine Lagarde as its managing director, starting on July 5. Lipsky has been the acting managing director since Dominique Strauss-Kahns resignation last month after he was charged with attempted rape in New York.
–Editors: Kevin Costelloe, Christopher Wellisz