Greece’s two biggest parties, Pasok and New Democracy, reached a common position on how the state should recapitalize the country’s banks, Kathimerini reported, without saying how it got the information.
The parties, which both support Prime Minister Lucas Papademos’s interim government, favor recapitalizing banks for losses arising from a sovereign debt swap by issuing them with convertible bonds of three- to five-year duration, the Athens- based newspaper said. If the banks didn’t call the bonds at the end of that period, the debt would be converted to common shares with full voting rights, Kathimerini said.
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