ECB Coene: Belgian Banks In Talks On Greek Debt Rollover

Belgian banks are in ongoing talks with the country's central bank and finance ministry about rolling over their Greek debt as part of efforts to resolve the debt-stricken country's woes, Belgian National Bank governor Luc Coene said Thursday.

"You have to gain time in the process to allow the adjustment measures to take effect," Coene told reporters on the fringes of a presentation about cross-border banking. "We had a first meeting with banks to get agreement on the numbers, now the rest is with the finance ministry."

Coene confirmed that the talks were aiming for a July 3 deadline, and that so far the country's three largest financial institutions Dexia, KBC and insurer Ageas had been involved.

"To get an agreement you need one option," Coene said, noting the aim is to get all institutions to agree to a single plan to extend the maturities, adding that he was "surprised to see" it was banks, rather than insurers, that had pushed for an extension of 25-30 years in neighboring France. "There is a need for a minimum level of commitment... all the pieces have to come together," he said.

The talks include the option of rolling over Greece's principal debt to 2014, thereby enabling the country to borrow as normal, and must respect the principle of burden-sharing, Coene added.

-By Frances Robinson, Dow Jones Newswires; [phone]; [e-mail]