EU expects deal on Greek aid by end June

AFP, Friday 10 Jun 2011

A new bailout package for Greece is to be agreed by the end of the month, says EU president

EU president Herman Van Rompuy on Friday said he was confident that a new aid package for debt-ridden Greece could be agreed by the end of June.

"We are working on additional European financial means for Greece," Van Rompuy told a news conference in Nizhny Novgorod after a summit meeting with Russian leaders.

"As in the past, we will have a positive outcome and we will reach agreement by the end of the month. If you ask me if I am confident, my answer is yes, I am confident," he added.

Van Rompuy said the parties are also working "on some form of private sector involvement" to avoid a "default or credit event".

The EU summit on 23-24 June is shaping up to focus primarily on a new rescue for Greece, following its 110-billion-euro EU-IMF bailout last year.

Germany and the European Central Bank have been at loggerheads over whether to force Greek bond holders to participate in a fresh rescue.

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