French Banks Said to Offer 70% Greek Government Debt Rollover

June 27 (Bloomberg) -- French banks, including BNP ParibasSA, have told the French government they are willing to partlyroll over maturing Greek government bonds in a bid to avoid adefault by the debt-laden nation, three people familiar with theplan said yesterday.     Under the proposal discussed in recent days between theFrench Banking Federation and the French Treasury, bondholderswould re-invest about 70 percent of Greek sovereign debtmaturing from mid-2011 to mid-2014, said one of the peopledirectly involved with the talks.     Fifty percent of the redemptions would go into 30-yearGreek securities, with the remaining 20 percent invested in afund made of “very-high quality” securities that would backthe 30-year bonds, that person said. The proposal may bealtered, he said. All three people spoke on condition ofanonymity because the talks are ongoing and private.     European governments are seeking to persuade the region’sbanks to voluntarily participate in Greece’s second bailout tomake the country’s debt burden more sustainable. European banksheld about $52 billion of Greek sovereign debt at the end oflast year, according to Bank for International Settlements data,with French banks owning $15 billion, the second-largestposition after German banks, which owned $22 billion.     European Union leaders at a Brussels summit that ended June24 backed a new aid program to stave off a Greek default so longas Greek Prime Minister George Papandreou shepherds 78 billioneuros ($111 billion) of austerity measures through parliament ina vote slated for June 29.                          Parallel Talks      Parallel talks between financial companies and financeministries across Europe on the participation of private-sectorbondholders took place last week. French newspaper Le Figarofirst reported the French banks’ proposal on its Web site today.     Spokespeople at the French Finance Ministry and the FrenchBanking Federation couldn’t be reached for comment by BloombergNews today.     French President Nicolas Sarkozy told reporters in Brusselson June 24 that he had “no apprehensions or difficulties”about the discussions with banks, while Prime Minister Jose LuisRodriguez Zapatero said Spanish banks are “well disposed” toprivate-sector involvement as their positions are “small.”Talks are also under way in the Netherlands.      German Chancellor Angela Merkel’s government said June 24banks and insurers will recognize their “very high interest”in sharing the burden of a Greek financial package and anagreement will be reached in the next nine days.     European finance chiefs will decide on July 3 whetherGreece has met conditions for its next aid payment.