Greek bondholders warn of obstacles to deal after talks

The group representing private-sector holders of Greek bonds has warned that obstacles to a deal on a voluntary debt exchange remain unresolved and time is "running short".

Officials from the Institute of International Finance met Greek leaders in Athens yesterday to discuss a plan to cut the value of their bonds by half in return for a mix of cash and new bonds, aimed at putting Greece's debt on a more sustainable footing.

"A range of issues were discussed and some key areas remain unresolved. Discussions will continue in Athens tomorrow," the IIF said.