Greece's finance minister is to hold crucial talks in Athens on Thursday with the head of a global banking association representing private bond holders over a debt reduction deal that is crucial part of the country's second international bailout, AP reported. Charles Dallara, head of the Institute of International Finance, is scheduled to hold meetings with Evangelos Venizelos and Prime Minister Lucas Papademos, as pressure mounts for a conclusion to the negotiations on the bond swap. Greece hopes to finalize the deal soon with private investors for a voluntary 50 percent reduction in the value of their Greek bond holdings - before a looming March deadline to repay Euro 14.5 billion in bonds. The bond swap, known as the Private Sector Involvement, is a critical part of Greece's Euro 130 billion ($165 billion) international rescue which was agreed on in October but whose details remain to be worked out. The deal is essential to containing the country's massive national debt, with the aim of reducing it from more than 160 percent of gross domestic product to 120 percent by 2020.
