Greece Said to Seek Recycling of Bank Funds for Exit

Greek officials are trying to persuade creditors in the euro area to convert funds originally earmarked for banks into a credit line to help the nation escape its bailout program, according to two people familiar with the matter.

The Greek proposal would see a new financial tool combining unused funds from its existing program with the profits that euro-area central banks made on their Greek bonds portfolio, said the people, who asked not to be identified because they are not authorized to speak publicly on the matter. That would give Greek officials a backup plan should they struggle to sell bonds and also allow them to avoid the conditions tied to existing facilities.