German banks back French plan on Greece -sources

FRANKFURT, June 28 (Reuters) - German banks have agreed in principle to use a French proposal as a basis for negotiating private-sector participation in a Greek debt rollover, two sources close to the negotiation told Reuters on Tuesday.

"The French proposal should form the basis for working out a German decision," one of the sources said.

However, a third source said other approaches were still on the table.

The final details of the agreement, such as the volume of any rollover and the coupon payments of new bonds, still need to be finalised, the sources also said.

The French proposal for restructuring Greek debt involves two options for bondholders to choose during a period from July 2011 to June 2014, according to a draft seen by Reuters on Tuesday.[ID:nL6E7HS1H7]

France offered a radical solution on Monday for banks to roll over some Greek debt for 30 years as the Greek government fought for political support of its five-year austerity plan to avert bankruptcy. [ID:nLDE75P0BM]

It remains unclear whether the agreement would also be backed by German insurance companies, another person familiar with the discussions said.

(Reporting by Kathrin Jones, Philipp Halstrick, Arno Schuetze and Jonathan Gould; writing by Edward Taylor)