Greek default fears resurface as bondholder talks collapse

Talks between Greece and private sector bondholders have collapsed, with the two parties failing to reach agreement over the country's debt restructuring.

The Institute for International Finance, which represents banks and other private bondholders of Greek debt, said on Friday it has stopped talks and is reconsidering the benefits of the ‘voluntary' restructuring approach agreed last October. The eurozone and the IIF had agreed to a 50% voluntary haircut in privately held Greek debt, worth €103bn, with Greece receiving a second bailout worth up to €130bn in return. But the IIF said negotiations over the bond swap have now been "paused". A Greek official told Bloomberg the talks will resume on Wednesday, however. "Unfortunately, desp...