Greece clears state guarantees for new bonds-govt source

ATHENS, April 11 (Reuters) - Greece's cabinet approved on Wednesday the use of state guarantees to back up the value of the new bonds its banks have received as part a sovereign debt swap, a senior government source said.

"The legislative act establishes contingent-convertible bonds (CoCos) and allows the use of state guarantees on the new bonds so that banks can book them at 100 percent of their value," the official told reporters.