Factbox: French proposal for private sector Greek bailout

PARIS (Reuters) - French banks have agreed to roll over their holdings of Greek debt for 30 years, President Nicolas Sarkozy said, as part of a European plan to help Greece make payment on its debts and avoid bankruptcy.

Following is an outline of the proposal drawn up by French banks and currently under discussion with other private holders of Greek debt in banking and insurance around the European Union, according to a senior French government source:

* A group of French banks including BNP Paribas, Credit Agricole and Societe Generale have drawn up a proposal under which they would roll over a majority of their Greek bonds maturing in 2011-14 for 30 years in exchange for guarantees.

The amount of privately-held Greek debt that needs to be rolled over remains unclear, although other European sources have said it would have to be at least 30 billion euros.

* The French banks' plan essentially means they would agree to lengthen the maturity of their Greek debt holdings in exchange for rolling over less than 100 percent of the debt.

* Under the plan, which French banks are discussing with counterparts in other EU countries, Greece would immediately pay them back 30 euros out of every 100 euros of maturing debt.

* Of the remaining 70 euros, banks would roll over 50 euros for 30 years and place that debt in a Special Purpose Vehicle, leaving them with equity in the SPV and taking the bonds off their balance sheets. There would be no public sector guarantee for the SPV and banks could not immediately trade the bonds inside on the open market.

However, in exchange for taking on the risky debt they would be rewarded with extra interest indexed to Greece's growth rate.

Depending on whether other EU member states join up to the plan, the SPV could be based in Paris, Frankfurt or elsewhere.

* The final 20 euros out of each 100 euros will be reinvested in zero-coupon, AAA-rated bonds. The security of this tranche is aimed at compensating for the risk of the SPV.

* The plan could be extended to cover insurance companies, investment funds and other holders of Greek debt.

(Reporting by Emmanuel Jarry and Nick Vinocur; Editing by Catherine Evans)