Greek PM presses for deal on loan

French Finance Minister Pierre Moscovici, left, speaks with Greek Finance Minister Yannis Stournaras during a meeting of eurogroup finance ministers in Brussels on Tuesday, Nov. 20, 2012. European Union officials will make a fresh try Tuesday to reaching a political accord on desperately needed bailout loans to Greece, an agreement that eluded them last week. (AP Photo/Thierry Charlier)

By ELENA BECATOROS

Associated Press / November 21, 2012

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But the extensions, both on the austerity program and the debt reduction target, would cost more money since Greece’s debt would have to be financed over a longer period. The troika estimates that, including the extensions, Greece will need an extra €31.6 billion through 2016.

Eurozone countries agree that the gap should be filled largely by Greece buying back debt from the country’s private investors, German Finance Minister Wolfgang Schaeuble told reporters in Berlin. He noted that Greek bonds are trading at about 30 percent of their face value on the market. Greece’s private investors have already agreed to a debt reduction plan which saw up to 50 percent wiped off the value of their investments.

‘‘If those are bought, we can reduce the overall indebtedness significantly — however, in order to do that, we need extra financing,’’ Schaeuble said.

Schaeuble estimated that up to €10 billion is needed to finance the planned debt buyback. Some countries want to get the extra financing by reducing the interest rates they charge the country, he said, but Germany would prefer to increase the temporary eurozone rescue fund’s program for Greece.

Greek stocks fell, with the general share index down 0.3 percent in midday trading — recovering from an opening fall of more than 3 percent.

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Geir Moulson contributed from Berlin.