Germany Says Banks Will Recognize Own Interest in Greece Aid

German Chancellor Angela Merkel's government said banks and insurers will recognize their "very high interest" in sharing the burden of a Greek financial package and an agreement will be reached in the next nine days.

Negotiations with private banks and insurers to participate in a financial package by rolling over debt to prevent Greece from defaulting will wrap up by July 3, Finance Ministry spokesman Martin Kotthaus told reporters today in Berlin. French President Nicolas Sarkozy indicated talks are going smoothly.

"We are very convinced that the financial market -- that is all private participants on Greece's outstanding debt, banks and insurers and others -- has a very high, fundamental self- interest to participate in the stability of Greece and the euro zone," Kotthaus said. Signals from European banks indicate they are willing to shoulder part of the burden voluntarily, he said.

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