February 20, 2012 / 10:40 PM / 5 years ago

Private sector willing to take deeper Greek loss- sources

BRUSSELS, Feb 20 (Reuters) - Private sector negotiatiors have proposed accepting a bigger loss on their Greek bonds to help plug a funding gap, two senior euro zone sources said on Monday, as euro zone finance ministers inched towards agreeing a second bailout for the debt laden country.

Asked on Monday what private sector negotiatiors, represented by the Institute of International Finance, had proposed during a meeting in Brussels to help fund further debt relief for Greece, one source said "a higher haircut", but declined to give further details.

Earlier, euro zone finance ministers interrupted their meeting and senior representatives of the euro zone and Greece met with the negotiators for the private creditors to find ways to renegotiate a debt swap on Greek bonds.

Agreement with the private sector is a critical element in trying to reduce Greece's debts to about 120 percent of GDP by 2020, a target agreed with the IMF, ECB and European Commission.

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