Germany, France Agree Selective Greek Default Possible

Germany and France are agreed that a selective default on Greek debt is possible, enabling private sector involvement to solve Greece's debt crisis, Dutch Finance Minister Jan Kees de Jager said on Thursday.

Speaking in the Dutch parliament, De Jager said there were still a range of options for how banks would contribute to Greece's debt, including swapping existing debt below nominal value for longer-dated debt.

"The demand to prevent a selective default has been removed. We can continue with the bank plan, which is still confidential. But that plan has the options I have just described, a menu of options. But it will lead to private sector involvement," he said.