Papandreou Criticizes Proposal for Creditor Role in Bailout

Greek Prime Minister George Papandreou criticized proposals being considered to share the cost of a bailout with creditors, adding pressure on European finance ministers to find alternative plans.

The proposal “seems to be flawed,” Papandreou said in a letter to Luxembourg Prime Minister Jean-Claude Juncker, who chairs meetings of euro-area finance ministers. “It could prove to be too expensive, too little and too dangerous. Too expensive for Greece and too little or inadequate to effectively deal with the management of Greek debt. And with these meager results one may still not avoid a selective default.”